The scheme will be implemented from FY 2026-27 to FY 2035-36 to accelerate the development of India's CBG industry. It will support the conversion of agricultural residue, cattle dung, press mud, municipal organic waste and other biomass resources into CBG and organic manure.
GOBARdhan Scheme 2026: Key Details
| Particulars | Details |
| Scheme Name | GOBARdhan Scheme |
| Scheme Description | National Circular Bioenergy Scheme / National Unified Scheme for Compressed Biogas |
| Total Outlay | ₹23,731 crore |
| Implementation Period | FY 2026-27 to FY 2035-36 |
| Nodal Ministry | Ministry of Petroleum and Natural Gas |
| Main Focus | Compressed Biogas (CBG) production |
| Production Target | Nearly ten-fold growth in domestic CBG production |
| Administered CBG Price | ₹2,110 per MMBTU |
| Capital Assistance | Up to ₹2 crore per TPD of installed CBG capacity |
| CBG Obligation | 3% in FY 2026-27, 4% in FY 2027-28 and 5% from FY 2028-29 onwards |
What is the GOBARdhan Scheme?
GOBARdhan is a national framework for expanding India's Compressed Biogas production and developing the supporting ecosystem required for the industry. CBG is produced by processing organic feedstocks such as cattle dung, agricultural residue and other biodegradable materials. After purification and compression, it can be used as a renewable gaseous fuel and integrated into the existing gas ecosystem.
Six Components of the GOBARdhan Scheme
The scheme has six major components covering demand, pricing, investment, infrastructure, finance and local ecosystem development.
Each of the 6 growth engines under GOBARdhan Scheme have been described in detail.
1. Assured CBG Offtake
GOBARdhan establishes a CBG Offtake Assurance framework to provide producers with a predictable market. Procurement by City Gas Distribution (CGD) entities will support the notified CBG Obligation for the CNG (Transport) and PNG (Domestic) segments. The CBG Obligation Trajectory is:- 3% in FY 2026-27
- 4% in FY 2027-28
- 5% from FY 2028-29 onwards
2. Stable CBG Pricing
The scheme provides for an administered CBG price of ₹2,110 per Metric Million British Thermal Unit (MMBTU) through a government-backed pricing framework. The pricing mechanism is designed to provide producers with greater revenue visibility while maintaining consumer affordability through government support and a market-based cost-sharing mechanism. The framework will have a minimum 10-year horizon, giving producers greater certainty for investment and capacity expansion.3. Capital Assistance
Eligible greenfield CBG projects will receive capital assistance of up to ₹2 crore per tonne per day (TPD) of installed CBG capacity. The assistance can cover important value-chain assets in addition to core plant machinery, including infrastructure for feedstock aggregation and organic manure processing and value addition.Brownfield projects undertaking capacity expansion will also be eligible. The support is intended to reduce the initial capital requirement and facilitate participation by private developers, MSMEs, cooperatives and rural entrepreneurs.
4. Development of Pipeline Infrastructure
The scheme supports cluster-based and standalone pipeline infrastructure for connecting CBG plants with trunk pipelines and City Gas Distribution networks. This infrastructure is expected to improve CBG evacuation, reduce related costs and enable producers to access wider markets through existing gas networks.5. Credit Guarantee Support
A dedicated Credit Guarantee mechanism will support eligible MSME-based CBG projects. By sharing a portion of lending risk, the mechanism is intended to improve access to institutional finance and may reduce collateral requirements for eligible projects. The measure is expected to make financing more accessible to MSMEs, women entrepreneurs and first-time developers.6. CBG Ecosystem Challenge Fund
The CBG Ecosystem Challenge Fund will support district-level development of the CBG sector. Its activities will include:- Feedstock resource assessment and mapping
- Feedstock aggregation infrastructure
- District-level CBG development planning
- Technology adoption
- Process improvement
- Organic manure value addition
- Capacity building
- Stakeholder awareness
Background of the GOBARdhan Scheme
The government has been developing India's CBG sector through several initiatives introduced over recent years. These include the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, Market Development Assistance (MDA) Scheme for organic manure, Biomass Aggregation Machinery (BAM) Scheme, Development of Pipeline Infrastructure (DPI) Scheme and Central Financial Assistance (CFA) for CBG plants under the National Bioenergy Programme.These measures have helped establish CBG production and offtake systems, strengthen the organic manure value chain and demonstrate the potential of different biomass feedstocks. According to the government, these initiatives have contributed to the commissioning of more than 200 CBG plants.
GOBARdhan builds on this foundation by bringing the major requirements of the CBG sector together under one national framework. This is intended to provide greater certainty to project developers, investors and lenders.
Expected Impact of GOBARdhan Scheme
The government expects the scheme to have an impact across India's energy, agriculture, waste-management and rural economy sectors.- Nearly Ten-Fold Growth in Domestic CBG Production - The primary target is to achieve nearly ten-fold growth in domestic CBG production, making renewable gas a more significant part of India's energy mix. It would help in creating a new pillar of India's clean gas economy.
- Improved Energy Security - Greater domestic production of CBG can increase the availability of renewable gaseous fuel and help reduce dependence on imported fossil fuels.
- Increase in Private Investment - GOBARdhan Scheme would usher a new wave of private investment supported by stronger project viability, stable pricing and improved access to institutional finance.
- Strong Rural Livelihoods - New income opportunities for farmers, feedstock aggregators, cooperatives and rural entrepreneurs.
- Scientific Waste Management - It would be done through productive use of agricultural residue, cattle dung, municipal organic waste and other biomass resources.
- Lower Greenhouse Gas Emissions - By replacement of fossil fuels and productive utilization of organic waste.
- Larger Organic Manure Economy - Through greater production, value addition and utilization of FOM and LFOM.
- Faster and Easier Project Implementation - Through one national framework, digital governance and simplified institutional arrangements.
GOBARdhan Scheme under Which Ministry
The GOBARdhan Scheme is administered by the Ministry of Petroleum and Natural Gas (MoPNG). The ministry oversees the integrated framework covering CBG offtake, pricing, capital assistance, pipeline infrastructure, credit support and ecosystem development.GOBARdhan Scheme and Atmanirbhar Bharat
GOBARdhan supports the broader objective of Atmanirbhar Bharat by promoting domestic production of renewable fuel from India's own biomass resources. The scheme connects the availability of organic resources with CBG production, gas infrastructure, organic manure processing and rural economic activity. This creates a circular model in which waste and biomass become inputs for energy and agricultural products.Official GOBARdhan Scheme Sources
The Cabinet approval and detailed scheme information are available on the following official Government of India websites:- Prime Minister of India: Cabinet approves GOBARdhan, India’s National Unified Scheme for Compressed Biogas
- Press Information Bureau: Cabinet approves GOBARdhan, National Circular Bioenergy Scheme
Conclusion
The GOBARdhan Scheme 2026 provides a unified framework for scaling up India's Compressed Biogas sector. With an outlay of ₹23,731 crore, the scheme combines market assurance, pricing support, capital assistance, infrastructure, credit and ecosystem development to address the major requirements of CBG projects.By targeting nearly ten-fold growth in domestic CBG production, GOBARdhan aims to turn India's organic resources into clean energy and economic value while supporting energy security, rural development and the country's waste-to-wealth objectives.
Posts
0 Comments