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flag India’s 2026 budget waives excise duty on biogas-CNG blends to boost clean energy, rural growth, and net-zero goals.

flag India’s 2026 Union Budget proposed an excise duty waiver on biogas blended with compressed natural gas, potentially unlocking up to ₹1 lakh crore in investments. flag The move aims to boost the compressed biogas sector, support India’s 2070 net-zero goal, and correct a prior policy imbalance that taxed renewable biogas like fossil-based fuel. flag A 5% blending target within five years could require 2.5–3 million metric tonnes of biogas annually, driving ₹45,000–55,000 crore in investment, with potential to double under a 7–8% blending scenario by 2032. flag The waiver improves cost competitiveness, supports rural development, lowers fuel costs for distributors, and enhances project financing. flag India’s biogas potential is estimated at 60 million tonnes yearly from agricultural and municipal waste. flag Biogas reduces lifecycle emissions by 70–90%, and a 10% blend could cut 12–15 million tonnes of CO2-equivalent annually.

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