India Launches GOBARdhan to Boost Compressed Biogas Production
The Union Minister of Petroleum and Natural Gas, Shri Hardeep Singh Puri, has officially unveiled GOBARdhan, a significant Central Sector Scheme aimed at advancing the Compressed Biogas (CBG) sector in India. The initiative was approved by the Union Cabinet on August 6, 2026, with a substantial financial allocation of ₹23,731 crore, providing a comprehensive ten-year framework from FY 2026–27 to FY 2035–36. This scheme is set to increase the country’s domestic CBG production nearly ten-fold, reaching an estimated 5 million metric standard cubic meters per day (MMSCMD), while offering investors and lenders enhanced certainty.
During the launch event, key stakeholders from the CBG ecosystem gathered, including representatives from Central Ministries, State Governments, CBG developers, and financial institutions. The event highlighted the unveiling of the GOBARdhan Handbook, a valuable resource designed to assist various stakeholders in understanding the scheme and its processes. Additionally, the Unified GOBARdhan Portal was introduced as a central digital platform aimed at simplifying applications and enhancing transparency.
In his address, Shri Puri emphasized the importance of meeting India’s growing energy needs through sustainable domestic resources. He noted that CBG is crucial as it transforms agricultural waste, such as crop residue and cattle dung, into clean energy. This process not only provides environmentally friendly energy but also produces organic manure while creating economic opportunities in rural regions. Local farmers, cooperatives, and enterprises can engage in different stages of the CBG supply chain, which fosters a circular relationship between agriculture and energy.
Dr. Neeraj Mittal, Secretary of the Ministry of Petroleum and Natural Gas, pointed out that India currently relies on imports for nearly half of its natural gas supply. He stated that CBG offers the chance to utilize domestic organic waste as an energy resource. Furthermore, he addressed challenges faced by the sector, including unpredictable revenues and limited policy visibility, which GOBARdhan aims to resolve through a consolidated operational framework.
Key Features of the GOBARdhan Scheme
A presentation on GOBARdhan detailed its integrated approach, transitioning from fragmented initiatives to a cohesive system. The scheme encompasses six main components: CBG Offtake Assurance, CBG Pricing Framework, Capital Assistance for CBG Projects, Pipeline Infrastructure Development, Credit Guarantee Support, and the CBG Ecosystem Challenge Fund.
Amongst its provisions, the scheme ensures that CBG plants are strategically aligned with City Gas Distribution (CGD) networks, securing reliable market access. Moreover, it introduces a fixed CBG price of ₹2,110 per million British thermal units (MMBtu), enhancing revenue predictability for producers. Greenfield projects may receive financial support of up to ₹2 crore per ton per day of installed CBG capacity.
Additionally, the initiative promises to address infrastructure challenges by extending capital expense support for pipelines that connect CBG clusters to larger pipeline systems. A dedicated credit guarantee will further facilitate project financing, particularly benefitting women-led micro, small, and medium enterprises (MSMEs).
The GOBARdhan initiative is on the path to transforming India’s energy landscape, with over 217 plants already in operation, boasting a combined capacity exceeding 1,700 tons per day as of August 2026. Over its ten-year implementation, the scheme is projected to yield substantial economic and environmental benefits, including an estimated ₹40,000 crore in foreign-exchange savings, an added ₹75,000 crore to the GDP, and the generation of more than 150,000 jobs. Furthermore, it is anticipated to replace 10 million tonnes of fossil fuels with clean gas and help reduce over 40 million tonnes of carbon dioxide emissions, while also promoting the production of 250 million tonnes of organic manure.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
