Cabinet Approves GOBARdhan, India's National Unified Scheme for Compressed Biogas

The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, approved GOBARdhan, India's National Circular Bioenergy Scheme, with a total outlay of ₹23,731 crore, aimed at scaling up Compressed Biogas (CBG) production nationwide.

What is the GOBARdhan Scheme 2026?

1. GOBARdhan aims to convert agricultural residue, cattle dung, press mud, municipal organic waste and other biomass resources into clean fuel, organic manure, rural income and broader economic value.
2.  It will run from FY 2026-27 to FY 2035-36, establishing Compressed Biogas as a key component of India's future energy mix. 
3. Through assured demand, stable pricing, capital support, pipeline infrastructure, credit access and technology development, the scheme is designed to give India's CBG sector a predictable, scalable framework, while mobilising large-scale private investment and building a robust circular bioeconomy.

From a Strong Foundation to National Scale

India has been building its CBG sector over recent years through initiatives such as:

1. SATAT, the Market Development Assistance (MDA) Scheme for organic manure
2. The Biomass Aggregation Machinery (BAM) Scheme 
3. The Development of Pipeline Infrastructure (DPI) Scheme
4. Central Financial Assistance (CFA) for CBG plants under the National Bioenergy Programme. 

These efforts have already led to over 200 CBG plants being commissioned, along with stronger production, offtake, and organic manure value chains. 

GOBARdhan builds on this progress by bringing the entire CBG value chain under one integrated platform administered by the Ministry of Petroleum and Natural Gas, enabling faster implementation and greater investor confidence.

How GOBARdhan Scheme Is a Strategic Opportunity for India

Rising natural gas demand across transport, households, industry and commercial sectors gives CBG room to grow as a domestic, renewable alternative that strengthens energy resilience and cuts reliance on imported fossil fuels. Since CBG is chemically equivalent to natural gas, it can be seamlessly blended into India's existing gas infrastructure. Beyond energy, each CBG plant fosters a local circular economy, creating opportunities in feedstock supply, transportation, plant operations and organic manure production, while supporting cleaner waste management and lower emissions.

Six Growth Engines under GOBARdhan

1. Assured CBG Offtake: A dedicated offtake framework requires City Gas Distribution entities to meet a notified CBG blending obligation,  3% in FY 2026-27, rising to 4% in FY 2027-28 and 5% from FY 2028-29, in CNG and PNG segments, creating a stable long-term demand signal.
2. Stable CBG Pricing Framework: An administered price of ₹2,110 per MMBTU, backed by government support over a minimum 10-year horizon, offers producers durable revenue certainty.
3. Capital Assistance: Eligible greenfield CBG projects can receive support of up to ₹2 crore per tonne per day of installed capacity, covering plant machinery as well as feedstock and manure processing assets; brownfield expansions also qualify.
4. Development of Pipeline Infrastructure: Support for cluster-based and standalone pipelines connecting CBG plants to trunk pipelines and City Gas Distribution networks, improving reliability and market reach.
5. Credit Guarantee Support: A credit guarantee mechanism to ease institutional lending for MSME-based CBG projects, reducing collateral needs and widening participation among MSMEs and women entrepreneurs.
6. CBG Ecosystem Challenge Fund: Support for district-level feedstock mapping, aggregation infrastructure, technology adoption, and capacity building to strengthen local CBG value chains.

What is the GOBARdhan Scheme expected to deliver?

1. Nearly ten-fold growth in domestic CBG production
2. Greater energy security through reduced dependence on imported fossil fuels
3. A new wave of private investment backed by stable pricing and improved financing access
4. Stronger rural livelihoods for farmers, feedstock aggregators, cooperatives and entrepreneurs
5. Scientific management of agricultural and municipal organic waste
6. Lower greenhouse gas emissions
7. A larger organic manure economy
8. Faster project implementation through one unified national framework