New Delhi, May 31, 2025:
On the request of the Indian Federation of Green Energy (IFGE), a meeting was held on May 31, 2025, with Shri Tarun Kapoor, Advisor to the Hon’ble Prime Minister, to hold detailed discussions on the Pain points impacting the industry’s growth and sustainability across segments such as Sugar to Ethanol, Grain to Ethanol, Compressed Biogas (CBG), Biodiesel, Densified Biomass, Sustainable Aviation Fuel (SAF), and Carbon Capture, Utilization and Storage (CCUS).
The major pain points of the industry raised by IFGE:
- Ethanol
- Ethanol prices are not aligned with rising feedstock costs (sugarcane, maize).
- Underutilized production capacity and delayed payments from OMCs.
- Regulatory barriers for grain-based ethanol (interstate movement, B2B sales).
- Slow adoption of Flex Fuel Vehicles (FFVs); need for tax rationalization.
- Compressed Biogas (CBG)
- Inadequate price revision and hold of Market Development Assistance (MDA) for LFOM.
- MDA disbursal to be linked with CBG Production and on a monthly production basis.
- Limited offtake, lack of grid connectivity, and lack of clear guidelines for the CBO implementation.
- GST credit recovery issues and absence of a dedicated nodal ministry for implementing CBG Investment case viability, Quarterly progress review with Industry.
- Biodiesel
- Unviable pricing, poor offtake, and weak policy enforcement.
- Need for duty-free raw material imports and formula-based pricing.
- Biomass Pellets: Lack of quality standards, GENCO participation, and supportive SOPs.
- Sustainable Aviation Fuel (SAF): High cost, limited feedstock, and absence of a detailed implementation scheme clearly listing the goals and blending targets
- CCUS: No clear regulatory framework or demand-side incentives.
Shri Kapoor offered valuable insights and actionable solutions on the raised challenges.
Our sector-wise dialogue covered in two significant proposals:
- Launching flex-fuel vehicles as a flagship pilot project in Delhi, creating a scalable model for nationwide adoption.
- Establishing a dedicated Green Energy Fund to foster and support innovative startups in the green energy ecosystem.
Shri Tarun Kapoor reaffirmed his strong commitment to addressing critical challenges faced by the sector. He assured to have a word with the relevant ministries to resolve the issue regarding MDA for LFOM in the CBG sector which is on hold. Additionally, Shri Kapoor will consider exploring the development of a real-time CBG data monitoring portal to boost transparency and efficiency. He further emphasized the need to streamline biofuel pricing mechanisms and strengthen institutional coordination for faster decision-making and implementation.
The meeting was physically attended by Bioenergy Industry leaders Mr Ravi Gupta, Chairperson Sugar Bioenergy Forum, Executive Director, Shree Renuka Sugars; Mr Prakash Naiknavare, Managing Director, National Federation of Cooperative Sugar Factories Ltd; Mr Ashish Kumar, Vice President IFGE, Vice Chairperson IFGE CBGPF & MD Verbio India; Mr Subodh Kumar, Chairperson, IFGE Biomass Global Associates Forum; Mr Sanjay Ganjoo, Director General, IFGE; Dr Tushar Patil, AVP Bioenergy and Corporate Strategy, Praj Industries. The Meeting was also attended online by Mr Y B Ramakrishna, Sr Vice President, IFGE, Chairman, IFGE CBGPF & Former Chairman, working group on biofuel, MoPNG; Dr. C.K. Jain, President, Grain Based Ethanol Manufacturers Association; Mr Vijay Nirani, Vice President IFGE & Managing Director, TruAlt Bioenergy; Mr Keshav Goela, Co-Chairperson, IFGE: CCUSF & Director, SS Gas Lab Asia; Mr Atul Kharate, Member IFGE CBGPF, COO, IndianOil Adani Ventures; Mr. Akhilesh Saraf, President, Biodiesel Manufacturers Association of India.
