GOBARdhan Gets ₹23,731-Cr Push for Clean Energy Expansion
National scheme aims to scale up compressed biogas production, boost rural incomes and strengthen India’s energy security
- Union Cabinet approves GOBARdhan scheme with an outlay of ₹23,731 crore.
- Scheme targets nearly ten-fold growth in domestic Compressed Biogas production.
- CBG producers to get assured offtake, stable pricing, capital support and easier financing.
- Farmers, MSMEs and rural entrepreneurs expected to benefit from the waste-to-wealth ecosystem.
GG News Bureau
New Delhi, 6th Aug: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Thursday approved GOBARdhan, the National Circular Bioenergy Scheme, with a total outlay of ₹23,731 crore to accelerate Compressed Biogas (CBG) production and strengthen India’s clean energy ecosystem.
The scheme will be implemented from FY 2026-27 to FY 2035-36 and aims to increase domestic CBG production nearly ten-fold by converting agricultural residue, cattle dung, press mud, municipal organic waste and other biomass resources into clean fuel and organic manure.
Administered by the Ministry of Petroleum and Natural Gas, GOBARdhan will bring various elements of the CBG value chain under a unified national framework, including assured offtake, stable pricing, capital assistance, pipeline connectivity, credit guarantees and technology development.
Under the scheme, City Gas Distribution entities will procure CBG in line with the notified blending obligation of 3 per cent in FY 2026-27, 4 per cent in FY 2027-28 and 5 per cent from FY 2028-29 onwards in the CNG transport and domestic PNG segments.
The government has also introduced a stable administered CBG price of ₹2,110 per MMBTU, backed by a minimum 10-year pricing framework aimed at providing long-term revenue certainty to producers.
Eligible greenfield CBG projects will receive capital assistance of up to ₹2 crore per tonne per day of installed capacity, while brownfield projects expanding production will also be eligible for support.
The scheme will additionally support pipeline infrastructure connecting CBG plants with trunk pipelines and City Gas Distribution networks. A dedicated credit guarantee mechanism will seek to improve institutional financing for eligible MSME-based projects and encourage participation by rural and women entrepreneurs.
A CBG Ecosystem Challenge Fund will support district-level feedstock mapping, aggregation infrastructure, technology adoption, organic manure value addition, capacity building and awareness initiatives.
The government said GOBARdhan is expected to mobilise large-scale private investment, create new income opportunities for farmers and rural enterprises, improve scientific management of organic waste and reduce dependence on imported fossil fuels.
The scheme builds on existing initiatives, including SATAT and other support programmes, which have helped commission more than 200 CBG plants across the country.
