&imwidth=800&imheight=600&format=webp&quality=medium "Cabinet approves ₹23,731 crore GOBARdhan scheme to boost compressed biogas production")
The Union Cabinet on Thursday approved the GOBARdhan (Galvanising Organic Bio Agro Resources Dhan) scheme with a total outlay of ₹23,731 crore, aiming to significantly increase India's compressed biogas production over the next decade while supporting rural incomes and reducing dependence on imported fossil fuels.
Briefing the media after the Cabinet meeting, Information and Broadcasting Minister Ashwini Vaishnaw said the scheme will be implemented from FY2026-27 to FY2035-36. He said it aims to increase domestic compressed biogas production nearly tenfold through an integrated framework that provides assured offtake, stable pricing, capital assistance, pipeline connectivity, credit support and technology development.
Integrated support for the CBG sector
An official release described the scheme as "a defining moment in India's clean energy journey" and said it "will transform the country's abundant agricultural residue, cattle dung, press mud, municipal organic waste and other biomass resources into clean fuel, organic manure, rural income and national economic value."
The government said the scheme builds on earlier initiatives, including SATAT, the Market Development Assistance (MDA) Scheme, the Biomass Aggregation Machinery (BAM) Scheme, the Development of Pipeline Infrastructure (DPI) Scheme and financial assistance provided under the National Bioenergy Programme.
According to the release, these initiatives have already helped commission more than 200 compressed biogas plants across the country. It added that the new scheme will bring the entire compressed biogas value chain under a single platform to improve project viability and provide greater confidence to investors and lenders.
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Pricing, blending and financial support
Under the scheme, City Gas Distribution entities will procure compressed biogas to meet the government's blending targets of 3 per cent in FY2026-27, 4 per cent in FY2027-28 and 5 per cent from FY2028-29 onwards for the CNG transport and PNG domestic segments.
The government has also fixed an administered compressed biogas price of ₹2,110 per Metric Million British Thermal Unit (MMBTU) under a minimum 10-year pricing framework to provide long-term revenue certainty for producers.
Eligible greenfield compressed biogas projects will receive capital assistance of up to ₹2 crore per tonne per day of installed capacity. The scheme also includes a dedicated credit guarantee mechanism for MSME-based projects, pipeline connectivity for compressed biogas plants and a CBG Ecosystem Challenge Fund to strengthen district-level implementation and feedstock supply chains.
The government said the scheme aims to strengthen India's clean gas economy by increasing renewable gas production, reducing fossil fuel imports, creating new income opportunities for farmers and rural entrepreneurs, improving waste management and cutting greenhouse gas emissions.
