The Centre has launched the ₹23,731 crore GOBARdhan scheme to accelerate India’s compressed biogas (CBG) sector and increase domestic production nearly ten-fold by 2035-36. The National Circular Bioenergy Scheme will be implemented from FY2026-27 to FY2035-36 and aims to make CBG a major part of India’s future energy mix.
The scheme brings assured offtake, stable pricing, capital assistance, pipeline connectivity, credit support and technology development under one framework. It aims to provide greater certainty for CBG producers, investors and lenders while encouraging private investment in the sector.
GOBARdhan will use agricultural residue, cattle dung, press mud, municipal organic waste and other biomass to produce clean fuel and organic manure. The government expects the programme to create additional income opportunities for farmers, rural entrepreneurs and other participants in the CBG value chain.
City Gas Distribution companies will provide a market for CBG through blending targets of 3% in FY2026-27, 4% in FY2027-28 and 5% from FY2028-29 onwards for CNG transport and domestic PNG. The scheme also sets a stable administered CBG price of ₹2,110 per MMBTU, with a minimum 10-year pricing framework.
The government expects domestic CBG production to reach around 5 million standard cubic metres per day. The initiative is also designed to reduce dependence on imported fossil fuels, strengthen energy security and promote scientific waste management.
