Roles and responsibilities of different entitires in Biogas sector
Seven-entity responsibility map for a CBG project — covering feedstock suppliers, farmers, project developer, technology provider, government, banks, and OMCs, with each party's specific duties across supply, finance, operations, and off-take.
| Entity | Detailed Responsibilities |
| Feedstock Suppliers | • Segregation of wet/dry waste at source.
• Timely collection and delivery to the plant site.
• Signing long-term (10-15 years) supply contracts. |
| Farmers and Agri-cooperatives | • Providing raw agricultural residue like straw and dung. • Purchasing and using Fermented Organic Manure (FOM) and Liquid Slurry. • Reporting improvements in crop yield and soil health back to the plant. |
| Project Developer | • Securing land and all local/national permissions.
• Day-to-day operations and maintenance (O&M).
• Managing the sale of both Compressed Biogas (CBG)/ Bio-CNG and Manure. |
| Technology Provider | • Designing the Anaerobic Digestion system.
• Installing Gas Cleaning & Upgrading units.
• Providing technical training and equipment warranties. |
| Govt. & Regulators | • Providing Financial Assistance (Up to ₹10 Crore).
• Enforcing the Mandatory Blending (CBO) laws.
• Regular environmental safety audits. |
| Banks/Lenders | • Funding 70% to 80% of the project cost.
• Monitoring project progress before releasing funds.
• Ensuring debt is repaid through gas sales revenue. |
| Off-takers (OMCs) | • Guaranteed purchase of gas at a fixed price (SATAT price).
• Providing quality testing and marketing support.
• Ensuring payment security through Escrow accounts. |
Beyond definitions
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How to read this table
- Each row is one entity; the single column lists that entity's specific responsibilities.
- Read the table in sequence from top to bottom — the order loosely follows the project's value chain from feedstock input to gas revenue.
- The Government/Regulator row covers both support (subsidies) and enforcement (compliance audits) — both are responsibilities of that entity.
About this table
A Compressed Biogas (CBG) plant is not a single-owner operation — it functions as an interlocking system where seven distinct categories of entities each carry defined duties. This table maps those responsibilities so that a new project developer can identify which relationships to structure, which agreements to secure, and which obligations sit with each party before the plant reaches commercial operation.
Supply-side entities — Feedstock Suppliers and Farmers/Agri-cooperatives — are responsible for consistent raw material flow. Feedstock suppliers sign long-term contracts (typically 10–15 years) matching the plant's operating life, while farmers who supply cattle dung and crop residue also receive and apply the Fermented Organic Manure (FOM) produced as a by-product, creating a closed nutrient loop with crop yield benefits. On the technical side, the Technology Provider handles Anaerobic Digestion system design, gas cleaning and upgrading installation, and post-commissioning training — their warranties typically cover the first one to two years of operation.
The financing structure shown here — banks covering 70–80% of project cost — is a standard debt-equity split for SATAT-registered projects where MNRE support makes lenders more willing to fund first-time developers. Government and regulators play a dual role: they provide financial assistance (up to ₹10 crore under the National Bioenergy Programme) and also enforce the Compressed Biogas Obligation (CBO) — the mandatory blending rule that guarantees demand for CBG output.
The off-take row is particularly important: Oil Marketing Companies (OMCs) under SATAT commit to guaranteed purchase at a fixed price, with payment security through escrow accounts. This assured-purchase structure is what gives lenders confidence to fund projects at the 70–80% debt level shown in the banks row.
Key insights
- The off-take guarantee from OMCs at a fixed SATAT price, secured through escrow, is what enables the 70–80% bank debt financing shown in the lenders row.
- Farmers are both input suppliers (crop residue, cattle dung) and output users (FOM, liquid slurry) — making them a critical partner for long-term feedstock security.
- The Project Developer carries the broadest set of obligations: land, permits, day-to-day operations, and revenue management for both CBG and manure streams.
- Government financial assistance of up to ₹10 crore and the mandatory blending obligation work together — subsidies reduce first-cost risk while blending mandates guarantee demand.
Methodology & sources
Responsibilities described are based on typical SATAT-scheme project structures as of 2024. Specific contract durations and financial assistance limits are drawn from MNRE and Ministry of Petroleum and Natural Gas (MoP&NG) programme guidelines. Individual project agreements may vary.
Related data tables
Feedstock Categories for Bio-CNG Production
Five feedstock types for Bio-CNG production mapped against sources, Indian regional availability, seasonal patterns, and gas yield — a practical reference for site-specific feedstock planning.
Stakeholder Mapping Across BIO-CNG Project Stages
Five-stage lifecycle map for a Bio-CNG project showing which parties — developers, banks, technology providers, OMCs — are involved at each stage, and what each stage must achieve before the next begins.