The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan), India’s National Unified Scheme for Compressed Biogas (CBG), with a total financial outlay of ₹23,731 crore. The ambitious scheme aims to transform agricultural residue, cattle dung, municipal organic waste and other biomass into clean energy, organic manure and rural economic opportunities. It will be implemented from FY 2026-27 to FY 2035-36.
Administered by the Ministry of Petroleum and Natural Gas, GOBARdhan seeks to increase India’s domestic CBG production by nearly ten-fold, positioning compressed biogas as a key component of the country’s clean energy mix. The scheme integrates assured offtake, stable pricing, capital assistance, pipeline infrastructure, credit support and technology development under a single national framework to attract private investment and improve project viability.
Building on earlier initiatives such as SATAT, the Market Development Assistance (MDA) Scheme, the Biomass Aggregation Machinery (BAM) Scheme, the Development of Pipeline Infrastructure (DPI) Scheme, and financial assistance under the National Bioenergy Programme, the government has already facilitated the commissioning of over 200 CBG plants. GOBARdhan is expected to accelerate this momentum by creating an integrated ecosystem for producers, investors and lenders.
The scheme comprises six major growth engines:
- Assured CBG offtake through City Gas Distribution (CGD) networks.
- Stable administered CBG pricing of ₹2,110 per MMBTU with a government-backed framework.
- Capital assistance of up to ₹2 crore per tonne per day (TPD) for eligible greenfield projects.
- Development of pipeline infrastructure connecting CBG plants to gas networks.
- Credit guarantee support for MSME-based CBG projects.
- A dedicated CBG Ecosystem Challenge Fund to strengthen district-level implementation, technology adoption and feedstock management.
According to the government, the scheme is expected to strengthen India’s energy security by reducing dependence on imported fossil fuels, promote scientific waste management, lower greenhouse gas emissions and generate new livelihood opportunities for farmers, cooperatives, rural entrepreneurs and MSMEs. It will also boost the organic manure economy while advancing the goals of waste-to-wealth, Atmanirbhar Bharat and Viksit Bharat.
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