Archive · 8 Aug 2026
Cabinet approves Rs 23,731 crore GOBARdhan scheme for biogas fuel
India's government approved a new plan called GOBARdhan.
It turns farm waste and cow dung into clean gas.
This gas can power vehicles and home stoves.
The plan will cost Rs 23,731 crore.
It will run from 2026-27 through 2035-36.
The government wants India to make more of its own energy.
This helps the country buy less fuel from other nations.
Farmers can earn extra money by selling their waste.
Making this gas also keeps the environment cleaner.
The Union Cabinet approved the GOBARdhan scheme with a total outlay of Rs 23,731 crore to produce Compressed Biogas (CBG).
The scheme will convert cattle dung, crop residue, press mud and municipal organic waste into clean fuel.
It will run from FY2026-27 to FY2035-36 and is expected to increase domestic CBG production nearly ten-fold.
Producers will get a fixed price of Rs 2,110 per MMBTU for at least 10 years, while City Gas Distribution firms must meet mandatory blending targets of 3-5%.
The scheme aims to reduce India's dependence on imported fossil fuels and create new income opportunities for farmers and rural entrepreneurs.
India has already built more than 200 CBG plants under earlier programmes such as SATAT.
- Who
- The Union Cabinet of India, with Civil Aviation Minister Ram Mohan Naidu Kinjarapu commenting on the scheme.
- What
- Approved the GOBARdhan scheme, a Rs 23,731 crore initiative to convert organic waste into Compressed Biogas (CBG).
- When
- The scheme was approved recently and will run from FY2026-27 to FY2035-36.
- Where
- India, with production focused in villages and rural areas.
- Why
- To reduce dependence on imported fossil fuels, boost energy security, create rural income and support a cleaner environment.
- Scheme name
- GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan)
- Total outlay
- Rs 23,731 crore
- Duration
- FY2026-27 to FY2035-36
- Fixed CBG price
- Rs 2,110 per MMBTU for at least 10 years
- Mandatory blending targets
- 3% in 2026-27, 4% in 2027-28, 5% from 2028-29 onwards
- Capital support
- Up to Rs 2 crore per tonne per day of capacity for new plants
- Existing CBG plants
- More than 200 built under earlier programmes such as SATAT
- Feedstock
- Cattle dung, crop residue, press mud from sugar mills and municipal organic waste