Direct Pipeline Infrastructure Scheme (DPI Scheme).pptx

This presentation provides an in-depth analysis of the Direct Pipeline Infrastructure (DPI) Scheme, launched by the Government of India in June 2024 to support the construction of pipelines connecting Compressed Biogas (CBG) plants to the City Gas Distribution (CGD) network. With a budget of ₹994.50 crore for FY 2024-25 and 2025-26, the scheme ensures cost-effective transportation of CBG, maximizing its utilization and promoting cleaner energy solutions.

1. DPI - Scheme (Direct Pipeline Infrastructure) Abhishek Padiyar

2. DPI Scheme This scheme was launched by the Government of India in June 2024 to support and subsidize the construction of pipelines connecting Compressed Biogas (CBG) plants to the City Gas Distribution (CGD) network. With a total budget of ₹994.50 crore for FY 2024-25 and FY 2025-26 . T he scheme aims to ensure that all CBG produced is efficiently transported to consumers through cost-effective pipelines. This will help maximize the use of CBG and promote cleaner energy solutions. Government Subsidy CGD Company CBG Company CGD Network Abhishek Padiyar

3. Financial Assistance Under the Scheme Pipeline Type Cost Assumption Financial Assistance (FA) Steel Pipeline ₹1 crore per km Up to 50 km: 50% of project cost or ₹0.5 crore/km (whichever is lower) 50-75 km: 50% of additional cost or ₹0.15 crore/km (whichever is lower) MDPE Pipeline ₹15 Lakh per km Up to 50 km: 50% of project cost or ₹7.5 Lakh/km (whichever is lower) 50-75 km: 50% of additional cost or ₹7.5 Lakh/km (whichever is lower) Note: FA is available for pipelines up to 75 km , with a maximum ceiling of ₹28.75 crore per project . No FA will be provided for additional length beyond 75Km ; the beneficiary must bear the cost. If connecting multiple plants via a single pipeline to the same CGD network, FA limits will apply separately to each sector of the pipeline. Abhishek Padiyar

4. Eligibility for Applying Under the Scheme CGD Entities with a Gas Supply/Transportation Agreement ensuring Minimum 50% take-or-pay & supply-and-pay commitment based on average CBG production. Note: CBG Producers can also lay pipelines if the CGD entity is unable to, after signing the Gas Supply Agreement . CGD entity under this scheme can connect only to the CBG Plants fulfilling the below criteria: Minimum installed capacity: 2 TPD (as per DPR) & must be registered on GOBARdhan portal. Preference to plants with 5+ TPD capacity. Under-construction projects must have at least 25% physical progress (as per DPR). OGMCs are also eligible to receive financial assistance under this scheme. The Steering Committee (SC) has full authority to review the eligibility criteria, and its decision will be final. Abhishek Padiyar

5. Composition of the Steering Committee (SC) Sr. No. Composition 1. Secretory , PNG (Chairman) 2. Secretary, Ministry of Housing and Urban Affairs or representative 3. Secretary, Department of Drinking water and Sanitation or representative 4. Secretary, Ministry of new or Renewable Energy or representative Note: Steering Committee may co-opt any other member, as appropriate. Abhishek Padiyar

6. Key Governing Bodies Under the Scheme Project Appraisal Committee (PAC): This body evaluates proposals, recommends projects, and ensures effective planning and implementation of the scheme. The PAC consists of the same members as the Steering Committee, with additional domain experts as needed . Project approval Board (PAB ): This board reviews projects recommended by the PAC and grants approval for further action by the Project Management Agency (PMA). It is chaired by the Secretary, PNG, and includes the Additional Secretary, PNG, Financial Advisor, PNG, Director-in-charge of CBG, representatives from IOCL and GAIL, and the Head of PMA. The PAB also approves the evaluation criteria based on PAC recommendations. Project Management Agency (PMA): This body is responsible for implementing and monitoring the scheme. It evaluates applications from CGD entities and CBG producers using an approved evaluation matrix and examines CBG-CGD pipeline configurations for optimal resource use. PMA appraises and recommends suitable applications to the PAC, which further recommends them to the PAB for approval. After PAB approval, PMA informs beneficiaries and conveys sanctions to the Central Nodal Agency (CNA). It verifies pipeline capacity utilization and recommends financial assistance release. The Centre for High Technology (CHT) is nominated as PMA under the DPI scheme . Abhishek Padiyar

7. Application and Approval Procedure Applications must be submitted through https://dpi.eil.co.in by 30.09.2025 . Incomplete applications will be rejected within 60 days, but resubmission is allowed once complete. PMA will evaluate proposals within three weeks of the cutoff date based on DPR, estimates, or verification, using PAB-approved criteria such as financial closure, construction status, and monetization potential. Eligible proposals will be forwarded to PAC monthly for recommendation to PAB. PAB/PAC may request clarifications from PMA or applicants if needed. If everything is in order, PAB will issue approvals within two months of receiving the application. Abhishek Padiyar

8. Financial Assistance Disbursement Process Approved beneficiaries will must obtain statutory approvals and lay the pipeline. The pipeline must be laid within 1 year of approval . If delayed due to uncontrollable reasons, an extension may be granted by PAC upon PMA’s recommendation. Beneficiaries must apply for an extension 30 days before the deadline with supporting documents. After laying the pipeline, beneficiaries must upload a commissioning report and CA-certified expense details and schedule a verification with PMA. Financial assistance (FA) will be released after confirming at least 50% utilization of the committed quantity for 3 months . After assessment, PMA will submit a recommendation for FA release to the Ministry who will transfer funds to CNA, which will release FA within two weeks of receiving funds. If required, PAC may form a verification team with officers from MoPNG , MoHUA , and DDWS to audit a fixed percentage of reports and FA release proposals. Abhishek Padiyar

9. Responsibilities of Beneficiary The beneficiary is responsible for the maintenance, security, and safe operation of the pipeline. The pipeline must be used only for Biogas supply by CBG producers. Excess Biogas/CBG can be sold by the CBG producer to other customers, subject to PNGRB regulations. The CGD entity or CBG producer who applied for FA and covered the remaining project cost as being the pipeline owner . The beneficiary must comply with all regulatory requirements, including pipeline hookup , safety standards, open access, and transportation tariffs. Failure to meet responsibilities will result in a written warning. Repeated violations may lead to financial assistance recovery as recommended by PAC. Abhishek Padiyar

10. Process and fund flow mechanism

11. References https://gobardhan.sbm.gov.in/ https :// dpi.eil.co.in/Default https:// dpi.eil.co.in/DPI-About%20the%20Scheme.pdf https:// dpi.eil.co.in/Scheme%20guidelines%20for%20development%20of%20pipeline%20infrastructure%20for%20injection%20of%20CBG%20in%20CGD.pdf https:// dpi.eil.co.in/DPI%20Scheme%20Guideline%20amendment.pdf https:// gobardhan.sbm.gov.in/whats-new/Scheme%20guidelines%20for%20development%20of%20pipeline%20infrastructure%20for%20injection%20of%20CBG%20in%20CGD.pdf