India has set up 132 Compressed Bio Gas (CBG) plants with a combined production capacity of 920 tonnes per day (TPD) as part of its efforts to strengthen renewable energy infrastructure, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said in a post on X. He added that the government is further expanding this capacity under the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative.
“What was once waste is now powering progress. India has 132 Compressed Bio Gas plants producing 920 TPD today, with more capacity coming up under SATAT. Turning farm and organic waste into clean fuel, rural income and lower emissions under the leadership of PM @narendramodi ji,” the minister wrote.
The SATAT scheme was launched on October 1, 2018, with the objective of creating an ecosystem for producing CBG from various waste and biomass sources across the country. Under the initiative, oil and gas marketing companies including IOCL, BPCL, HPCL, GAIL and IGL have invited expressions of interest to procure CBG from entrepreneurs for marketing.
Earlier, in December 2025, India reached another milestone in its energy sector by offering 50 new exploration and production (E&P) blocks covering oil, gas and coal bed methane (CBM) assets. The move was described by Puri as a renewed effort to tap domestic hydrocarbon potential and enhance energy security.
In another post on X, the minister said the development marked a “transformative milestone” under the leadership of Prime Minister Narendra Modi and highlighted India’s openness to both global and domestic investors.
“We are offering 50 new E&P blocks across Open Acreage Licensing Policy (OALP-X): 25 blocks, Discovered Small Field (DSF-IV): 55 fields across 9 contract areas/blocks. Special CBM Bid Rounds 2025 and 2026: 3 blocks (2025) & 13 blocks (2026),” he said.
According to the details shared, the 25 blocks under the Open Acreage Licensing Policy cover around 1.83 lakh square kilometres and include six onland blocks, six shallow water blocks, one deepwater block and 12 ultra-deepwater blocks.
Puri said key features of these blocks include exploration rights for the full contract period, revenue sharing at the lower revenue point for the first five to seven years in Category-I basins, no revenue sharing in Category-II and III basins until windfall gains, reduced graded royalty for offshore areas, and flexibility to swap work programmes.
“The quest to unlock the potential of India’s sedimentary basins gains a new thrust and momentum,” he added.
At the same time, the Discovered Small Field (DSF) Bid Round-IV comprises 55 discoveries across nine contract areas, aimed at speeding up the transition from discovery to production. Incentives under this round include zero royalty for the first seven years in deepwater areas, full marketing freedom on an arm’s length basis, and relaxed eligibility criteria, with prior experience in oil and gas not being mandatory.
Similar incentives and flexibility are being offered under the CBM bid rounds, including full pricing freedom, no overlap with coal blocks or mines, and for the 2026 round, reimbursement of costs by the government for mandated core-hole drilling.
The minister also pointed to the introduction of a unified regulatory framework through the Oilfields (Regulation and Development) Amendment Act, 2025, which separates petroleum operations from mining, along with the PNG Rules 2025.
He said the framework includes a revenue-sharing contract model to improve ease of doing business, a single license for conventional and unconventional hydrocarbons, exploration allowed throughout the contract period, reduced graded royalty rates, and stabilization provisions for changes in law.
Highlighting the special CBM bid round, Puri said, “Special CBM Bid Round-2025 is LIVE, offering 3 onland blocks namely Raniganj Coalfield (West Bengal) comprising 2 blocks, and Cambay Basin (Gujarat) with 1 block.”
