Cabinet Approves GOBARdhan Scheme: India’s ₹23,731 Crore Push for Compressed Biogas and Circular Bioenergy

Key facts

• The Union Cabinet approved the GOBARdhan (National Circular Bioenergy Scheme) with an outlay of ₹23,731 crore.
• The scheme will be implemented by the Ministry of Petroleum and Natural Gas over 10 years from 2026-27 to 2035-36.
• GOBARdhan aims to increase domestic compressed biogas (CBG) production by nearly 10-fold between 2026 and 2036.
• City gas distribution entities will procure CBG to meet blending obligations of 3% in 2026-27, 4% in 2027-28, and 5% from 2028-29 onwards in CNG and household piped natural gas segments.
• The scheme introduces a stable administered CBG price of ₹2,110 per MMBTU with a minimum 10-year horizon.
• Eligible greenfield CBG projects will receive capital assistance of up to ₹2 crore per tonne per day of installed capacity.
• Brownfield projects expanding their production capacity are also eligible for capital assistance under the scheme.
• The scheme supports cluster-based and standalone pipeline infrastructure connecting CBG plants with trunk pipelines and city gas distribution networks.
• A dedicated credit guarantee mechanism will expand institutional credit access for eligible MSME-based CBG projects.