Cabinet Approves Rs.23,731 Crore GOBARdhan Scheme for Compressed Biogas Production

The Union Cabinet has approved GOBARdhan, the National Circular Bioenergy Scheme, with a total outlay of Rs.23,731 crore to be implemented from FY 2026-27 to FY 2035-36. The scheme aims to transform agricultural residue, cattle dung, press mud, municipal organic waste and other biomass resources into Compressed Biogas (CBG), organic manure and rural income. It builds on existing initiatives including the SATAT initiative, Market Development Assistance Scheme for organic manure, Biomass Aggregation Machinery Scheme, Development of Pipeline Infrastructure Scheme and Central Financial Assistance for CBG plants, which have enabled commissioning of over 200 CBG plants. The scheme comprises six components: assured CBG offtake through procurement obligations of 3% in FY 2026-27, 4% in FY 2027-28 and 5% from FY 2028-29 onwards; stable administered CBG pricing at Rs.2,110 per MMBTU with minimum ten-year horizon; capital assistance up to Rs.2 crore per ton per day of installed CBG capacity for greenfield and brownfield projects; development of pipeline infrastructure connecting CBG plants with trunk pipelines and City Gas Distribution networks; credit guarantee support for MSME-based CBG projects; and a CBG Ecosystem Challenge Fund for district-level implementation. The scheme administered by the Ministry of Petroleum and Natural Gas is expected to drive nearly ten-fold growth in domestic CBG production, mobilize large-scale private investment, strengthen energy security through reduced dependence on imported fossil fuels, create rural livelihood opportunities, enable scientific waste management, lower greenhouse gas emissions and expand the organic manure economy. CBG being chemically equivalent to natural gas can be seamlessly integrated into existing gas infrastructure while creating local circular economies around organic resources.