Cabinet approves GOBARdhan, India’s National Unified Scheme for Compressed Biogas

Why in News?

The Union Cabinet on 6 July 2026 approved GOBARdhan – the National Circular Bioenergy Scheme, with a total financial outlay of ₹23,731 crore.

The scheme will be implemented from FY 2026–27 to FY 2035–36 and aims to make Compressed Biogas (CBG) a major pillar of India’s future energy mix.

Objectives of GOBARdhan

The scheme seeks to convert India’s abundant biomass resources into clean energy, organic manure, rural income and economic value.

It will utilise agricultural residue, cattle dung, press mud, municipal organic waste, Other biomass resources. 

The scheme aims to:

• Increase domestic CBG production nearly ten-fold.
• Mobilise large-scale private investment.
• Create a nationwide circular bioeconomy.
• Promote scientific management of organic waste.
• Generate additional income opportunities in rural areas.

Six Growth Engines of GOBARdhan

1. Assured CBG Offtake: The scheme establishes a dedicated CBG Offtake Assurance Framework to provide producers with a reliable and predictable market. Procurement by City Gas Distribution (CGD) entities will support the notified CBG Obligation trajectory of 3% in FY 2026-27, 4% in FY 2027-28 and 5% from FY 2028-29 onwards in the CNG (Transport) and PNG (Domestic) segments.
2. Stable CBG Pricing Framework: GOBARdhan introduces an administered CBG price of ₹2,110 per MMBTU (Metric Million British Thermal Unit). The government-backed pricing framework is intended to provide price stability and investment certainty to CBG producers.
3. Capital Assistance: Eligible greenfield CBG projects will receive capital assistance of up to ₹2 crore per TPD (tonne per day) of installed CBG capacity. Brownfield projects undertaking capacity expansion will also be eligible.
4. Pipeline Infrastructure: The scheme will support cluster-based pipeline infrastructure and standalone pipeline infrastructure. This will facilitate connectivity between CBG plants, trunk pipelines and City Gas Distribution networks.
5. Credit Guarantee Support: A dedicated Credit Guarantee mechanism will be established. It will improve lenders’ confidence and facilitate greater access to institutional credit for eligible MSME-based CBG projects.
6. CBG Ecosystem Challenge Fund: A dedicated CBG Ecosystem Challenge Fund will support district-level implementation. It will strengthen local feedstock supply chains, waste management and other components of the CBG ecosystem.

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