Imagine filling up a CNG car a few years from now and knowing that more of the gas has come from farm waste, cattle dung and other organic waste collected in India. That is the kind of change the government’s new GOBARdhan scheme could bring to the fuel sector.
The Union Cabinet has approved the National Circular Bioenergy Scheme, also known as GOBARdhan. The programme will run from FY2027 to FY2036 and has a total outlay of Rs 23,731 crore.
The main aim is to increase the production of compressed biogas or CBG across the country.
CBG can be used in vehicles that run on CNG. It can also be supplied through the gas network for other uses.
The scheme will support CBG plants using materials such as:
The government wants domestic CBG production to grow nearly ten times. It also wants more private companies and smaller businesses to enter this sector.
The connection with cars is quite simple. CBG can be blended with CNG and used in vehicles designed for CNG.
A large part of the existing CNG network and equipment can also work with CBG. This means the country does not have to create a completely new vehicle fuel system for it.
For the auto industry, this could lead to more interest in CBG compatible vehicles and related infrastructure.
Maruti Suzuki has already shown CBG powered models and has invested in CNG production infrastructure. Other manufacturers could also look at similar projects as CBG availability grows.
One major part of the scheme is the development of pipeline connections.
These pipelines can connect CBG plants with trunk pipelines and city gas networks. Better connectivity should make it easier to move the fuel from production plants to the places where it is needed.
This could make it easier for new CBG plants to get investment.
The benefits are not limited to cars. Farmers can get another use for agricultural waste and rural businesses can find new income opportunities.
There is also the waste management side. Organic waste that could otherwise be difficult to handle can become a source of fuel and organic manure.