India’s ₹23,731 Crore Push for Compressed Biogas and Rural Prosperity
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved GOBARdhan as the National Circular Bioenergy Scheme with a massive financial outlay of ₹23,731 crore. Set to run from FY 2026-27 to FY 2035-36, this landmark initiative aims to transform India's agricultural residue, cattle dung, municipal organic waste, and other biomass into clean energy, organic manure, and sustainable rural income.
Administered by the Ministry of Petroleum and Natural Gas, the scheme creates an integrated national framework to scale up domestic Compressed Biogas (CBG) production nearly tenfold.
Key Pillars of the GOBARdhan Scheme
Assured Offtake: City Gas Distribution entities must meet a mandatory CBG blending trajectory—3% in FY 2026-27, 4% in FY 2027-28, and 5% from FY 2028-29 onwards.
Stable Pricing Framework: Introduces an administered price of ₹2,110 per MMBTU with a minimum ten-year horizon to guarantee steady revenue for producers.
Capital Assistance: Greenfield projects will receive financial support of up to ₹2 crore per ton per day (TPD) of installed capacity to lower the initial investment barrier.
Pipeline Infrastructure & Credit Support: Dedicated funds and credit guarantee mechanisms will connect plants to trunk pipelines and ease institutional financing for MSMEs and rural entrepreneurs.
Ecosystem Challenge Fund: Focuses on district-level feedstock mapping, aggregation infrastructure, and organic manure processing.
Why This Matters for Rural India
By turning farm waste and cattle dung into wealth, GOBARdhan empowers farmers to become active partners in the nation's energy security. It promotes scientific waste management, reduces greenhouse gas emissions, and generates employment opportunities across rural communities.