Archive · 7 Aug 2026
Cabinet Clears Rs 23,731 Crore GOBARdhan Scheme to Boost Biogas
India's government has made a big plan to turn waste into clean fuel.
The plan is called GOBARdhan, and it makes clean fuel called compressed biogas from things like leftover crop plants, cow dung and other organic waste.
This fuel can be used in cars and for cooking in homes.
The government will spend Rs 23,731 crore to help build the factories that make this fuel.
The plan will run for ten years, from financial year 2027 to financial year 2036.
It wants India to make almost ten times more of this fuel than it makes today.
Companies that sell gas for cars and homes must buy more and more of this green fuel each year.
Producers will get a steady, fair price for at least ten years, and farmers can earn extra money while less crop waste is burned and less gas is bought from other countries.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved GOBARdhan, the National Circular Bioenergy Scheme, with a total outlay of Rs 23,731 crore.
The scheme will be implemented from FY27 to FY36 and targets 5 million metric standard cubic metres per day (MMSCMD) of domestic compressed biogas (CBG) production - nearly a ten-fold increase - replacing about 10 million metric tonnes of fossil fuels.
City gas distribution companies will procure CBG to meet a mandatory blending obligation of 3% in FY27, 4% in FY28 and 5% from FY29 onwards in the CNG transport and PNG domestic segments.
An administered CBG price of Rs 2,110 per MMBTU under a minimum 10-year pricing framework and capital assistance of up to Rs 2 crore per tonne per day of installed capacity support eligible greenfield projects.
The scheme also adds a credit guarantee mechanism for MSME-based projects, pipeline connectivity support and a CBG Ecosystem Challenge Fund, and is expected to save over Rs 40,000 crore in foreign exchange and create a Rs 75,000-crore industry.
- Who
- The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the scheme, which will be administered by the Ministry of Petroleum and Natural Gas.
- What
- Approval of GOBARdhan, the National Circular Bioenergy Scheme, a Rs 23,731 crore programme to boost domestic compressed biogas production, assure demand and reduce reliance on imported fossil fuels.
- When
- Approved on a Thursday, with implementation over ten years from FY27 to FY36 (FY2026-27 to FY2035-36).
- Where
- India - the approval was announced in New Delhi.
- Why
- To increase domestic CBG production nearly ten-fold and reduce dependence on imported natural gas - India imports around 50% of its requirement, according to Information and Broadcasting Minister Ashwini Vaishnaw - amid disruptions around the Strait of Hormuz, saving over Rs 40,000 crore in foreign exchange.
- Scheme name
- GOBARdhan (National Circular Bioenergy Scheme)
- Total outlay
- Rs 23,731 crore
- Implementation period
- FY27 to FY36 (10 years)
- CBG production target
- 5 million metric standard cubic metres per day (MMSCMD), nearly a ten-fold increase, replacing about 10 million metric tonnes of fossil fuels
- CBG blending obligation
- 3% in FY27, 4% in FY28, 5% from FY29 onwards in CNG transport and PNG domestic segments
- Administered CBG price
- Rs 2,110 per MMBTU under a minimum 10-year pricing framework
- Capital assistance
- Up to Rs 2 crore per tonne per day of installed capacity for eligible greenfield projects; brownfield expansions also eligible
- Administering ministry
- Ministry of Petroleum and Natural Gas
Sources
Cabinet clears ₹23.7k-crore GOBARdhan ‘waste-to-energy’ biogas scheme
Cabinet clears ₹23,731-crore biogas push with assured offtake, 10-year price support
Centre Clears Rs 23,731 Crore Scheme To Boost Biogas Sector, Empower Farmers