The scheme intends to increase domestic Compressed Biogas (CBG) production nearly tenfold and mobilise large-scale private investment
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The Cabinet on Thursday approved GOBARdhan, or the National Circular Bioenergy Scheme, with a total outlay of \u20b923,731 crore, or roughly $2.5 billion. The scheme aims to address long-standing bottlenecks such as assured offtake, stable pricing, evacuation infrastructure, and efficient feedstock aggregation.<\/p>\n
The scheme intends to increase domestic Compressed Biogas (CBG) production nearly tenfold, mobilise large-scale private investment, and create a vibrant circular bio-economy across the country.<\/p>\n
\u201cGOBARdhan marks a defining moment in India\u2019s clean energy journey. It will transform the country\u2019s 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,\u201d the government said.<\/p>\n
The scheme, which will be implemented from FY27 to FY36, will establish CBG as a major pillar of India\u2019s future energy mix through assured demand, remunerative and stable pricing, capital assistance, pipeline infrastructure, credit support and technology development, it added.<\/p>\n
The government is focusing on six growth engines under the GOBARdhan scheme \u2014 assured off-take, stable pricing, capital assistance, developing pipeline infrastructure, credit guarantee and ecosystem challenge fund.<\/p>\n
Welcoming the initiative, Sanjay Ganjoo, Director General, Indian Federation of Green Energy (IFGE), told businessline: \u201cIndia generates nearly 500 million tonnes of agricultural residue annually, much of which is still burned in the fields, contributing to severe air pollution. The real bottlenecks have been assured offtake, stable pricing, evacuation infrastructure and efficient feedstock aggregation. With only about 216 CBG plants commissioned against the ambitious CBG blending targets, project viability has been constrained by inadequate synchronisation between CBG production and City Gas Distribution (CGD) networks.\u201d<\/p>\n
By supporting both production and distribution infrastructure, the government has addressed the sector\u2019s most critical challenges. Assured offtake and pipeline connectivity will improve project bankability, enhance investor confidence and provide lenders with the long-term revenue visibility required to finance projects, he noted.<\/p>\n
\u201cAt the same time, organised procurement of paddy straw, press mud and other biomass will strengthen farmer participation and create reliable rural value chains. Beyond clean energy, every CBG plant will stimulate local economic activity through feedstock collection, transportation, plant operations and organic manure management, generating sustainable employment and additional income for rural communities,\u201d Ganjoo emphasised.<\/p>\n
Indian Biogas Association (IBA) President AR Shukla also welcomed the latest policy push, adding that the sector has long argued that biogas needed three things \u2014 a remunerative price, assured offtake, and capital support, which this scheme delivers.<\/p>\n
Its real impact will not be measured in kilograms of gas alone. It will be measured in paddy straw that is baled instead of burnt across India; in dung that earns a dairy farmer a second income; in fermented organic manure that rebuilds our depleted soils; and in imported LNG that we no longer have to pay for. Moving from roughly 300 operating plants towards 5,000 will create lakhs of rural jobs, he added.<\/p>\n
Varun Karad, CEO of Renergy Dynamics, pointed out that the proposed credit guarantee and capital support mechanisms under the scheme should significantly improve project bankability and attract greater participation from developers, lenders, infrastructure investors and climate-focused funds.<\/p>\n
To promote the bio-energy sector, the government began with a slew of policy interventions such as the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, Market Development Assistance (MDA) Scheme for organic manure, Biomass Aggregation Machinery (BAM) Scheme, Development of Pipeline Infrastructure (DPI) Scheme and Central Financial Assistance (CFA) for CBG plants under the National Bioenergy Programme.<\/p>\n
GOBARdhan now takes this progress to the next level. Administered by the Ministry of Petroleum and Natural Gas MoPNG, the Scheme creates one integrated platform across the entire CBG value chain, which will enable faster implementation, stronger project economics and greater certainty for investors, lenders and developers.<\/p>\n
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