How to Get an LOI Under the SATAT Scheme: Step-by-Step Guide

Securing long-term CBG Offtake Commitments from OMCs

The SATAT (Sustainable Alternative Towards Affordable Transportation) scheme, launched by the Government of India, is a major initiative focused on promoting Compressed Biogas (CBG) as an alternative clean fuel. If you are planning to establish a Bio-CNG plant, obtaining an LOI (Letter of Intent) from OMCs such as IOCL, BPCL, or HPCL is one of the most important initial steps.

The LOI ensures long-term buyback of your Bio-CNG production at a predetermined commercial price, drastically improving project bankability when seeking debt financing.

1. Why is the SATAT LOI Critical?

An LOI acts as a purchase guarantee. The OMCs commit to buyback your gas at commercial rates, typically ranging between:

This contract minimises market risk, assures consistent revenue projections, and satisfies banking conditions for loan disbursement.

2. Eligibility Requirements

• Legal Entity: Private Limited Companies, LLPs, registered Partnerships, Cooperatives, or government PSUs.
• Feedstock Security: Must demonstrate continuous raw input access (e.g. Napier grass contracts, pressmud agreements, municipal solid waste tipping rights).
• Land Possession: Clear title land suitable for CSTR digesters, gas upgrading blocks, high-pressure storage cascades, and bottling facilities.
• Financial Strength: Ability to fund promoter contribution equity and secure bank funding.

3. Step-by-Step Application Process

4. Common Bottlenecks

Delays in LOI issuance typically occur due to unsecure feedstock projections, unclear land boundaries, or poor DPR technical parameters. Incorporating a robust, low-OPEX upgrading technology like closed-loop Water Scrubbers often helps gain technical approval quickly compared to expensive VPSA skids.

How Greliance Support Project Developers

Greliance Technologies LLP supports developers across India with full turnkey services: bankable DPR preparation, PESO license compliance, MNRE subsidy claims, and plant commissioning. Our experienced clean-tech engineers ensure your files meet strict OMC approval standards, accelerating your project setup timeline.