Green Energy on the Horizon: Sanmit Infra Board Greenlights Bio CNG Plant Proposal

Sanmit Infra Ltd, a company engaged in construction of real estate projects, supply of petroleum products and biomedical waste management, has announced its plan to set up a bio CNG plant under the Sustainable Alternative towards Affordable Transportation (SATAT) scheme. The project is part of the company’s broader strategy of expanding its business operations over the next 2-3 years.

Benefits of Bio CNG

Bio CNG, also known as compressed biogas, is a renewable and clean source of energy that can be used as a substitute for natural gas and diesel in the automotive sector. Bio CNG is produced from organic waste such as agricultural residue, municipal solid waste, cattle dung and sewage, using anaerobic digestion technology. Bio CNG has several advantages over conventional fuels, such as:

• Reducing greenhouse gas emissions and air pollution
• Enhancing energy security and reducing dependence on imported fossil fuels
• Supporting rural development and creating employment opportunities
• Improving waste management and sanitation

SATAT Scheme

The SATAT scheme was launched by the Ministry of Petroleum and Natural Gas in 2018, with the aim of setting up 5,000 bio CNG plants across the country by 2025, with a potential production capacity of 15 million tonnes per annum. The scheme also envisages providing market access to bio CNG producers by signing long-term purchase agreements with oil marketing companies. The scheme is expected to generate an investment of Rs 1.75 lakh crore and create 75,000 direct and indirect jobs.

Sanmit Infra’s Vision

Sanmit Infra’s board of directors has approved the proposal for setting up a bio CNG plant in a recent meeting, and expects to commence work on the project soon. The location of the plant is yet to be disclosed. The company believes that the bio CNG project will contribute to India’s climate change goals, reduce dependency on imported natural gas and crude oil, and save significant foreign exchange. Additionally, the production of bio CNG will act as a hedge against fluctuations in international crude oil and gas prices, promoting self-reliance within the country.

The bio CNG initiative is integral to the company’s broader strategy of expanding its business operations over the next 2-3 years. As part of its expansion plans, the company aims to establish bulk storage facilities for direct bitumen imports from Gulf countries, expand its bitumen operations, and diversify its sales in the biomedical waste disinfection system nationwide.

Sanmit Infra reported a net profit of Rs 1.05 crore in Q2FY24, with a total income of Rs 18.91 crore and EBITDA of Rs 1.97 crore. The EBITDA margin for Q2FY24 increased to 10.4 percent from 4.3 percent in Q2FY23. For H1FY24, the company disclosed a net profit of Rs 1.57 crore, total income of Rs 52.47 crore, and EBITDA of Rs 3.22 crore.