cbg-sim

Market

Who buys it, and does it pay?

Offtake, price and the money. Assured offtake removes market risk; it does not remove feedstock risk, and lenders test the second one first.

Market & offtake

2

Who buys the gas, at what price, under which agreement, and how it gets to them.

Who buys the gas?sourced

Under SATAT the state oil marketing companies - IndianOil, BPCL and HPCL - buy CBG under long-term agreements and sell it at their retail outlets. CGD companies buy it through GAIL's synchronisation scheme, and industrial users and direct retail are additional routes.

SourceIOCL; GAIL; IMARCFull entry ->
Is there a guaranteed floor price for CBG?sourced

Yes. The original SATAT floor was 46 rupees per kg plus taxes, and under the synchronisation scheme a floor of 770 rupees per MMBTU applies. Pricing is now largely administered or formula-based rather than a single fixed rate, so quote the regime along with the number.

SourceIOCL FAQ; GAIL synchronisation schemeFull entry ->

Finance

2

Capex, the revenue stack, IRR and DSCR, and what a lender actually tests.

Is a CBG plant profitable?sourced

It can be, with commonly cited returns of roughly 14-20% IRR and a 4-6 year payback - but only where feedstock is secured cheaply, uptime reaches 85-90% and the digestate is monetised. Assured OMC offtake removes market risk; it does not remove execution risk, and the returns are execution-dependent.

Sourceeai.in; costmosFull entry ->
Who finances CBG plants?sourced

Promoter equity plus bank and NBFC debt - Bank of Baroda has a CBG line for plants of 2 TPD and above, and NABARD refinances rural projects - alongside MNRE capital subsidy and state incentives. CBG carries RBI Priority Sector Lending status, and GOBARdhan (2026) adds a credit guarantee covering up to 85% of eligible MSME loans.

SourcePelletRates; SATAT FAQ; GOBARdhan PIB; Drishti IASFull entry ->

2 of the pieces you can put on the canvas belong to this stage. Every figure behind them is the one the simulator runs on, and each card says what the block takes in and what it hands on.

MARKET & OFFTAKE
  • Tanker pickup by an oil marketing company under the SATAT scheme.

    TAKES CBG · SINK

    Default gate price
    ₹105/kg
    Transport to the buyer
    ₹3/kg

    9 answers ->

  • Direct injection into a city gas distribution pipeline.

    TAKES CBG · SINK

    Default gate price
    ₹110/kg
    Transport to the buyer
    ₹1/kg

    9 answers ->

Sourcing sits beside these blocks as it is verified — vendors, capacities and indicative lead times, kept separate from the modelled figures and labelled whenever a link is paid. Supply this equipment?

Ask about market

Answers come from this site's reviewed question bank and cite the entry they came from. Press / to focus. Not investment advice.

Market — Who buys it, and does it pay? · cbg-sim