The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved GOBARdhan, the National Circular Bioenergy Scheme, with a total outlay of Rs.23,731 crore, marking a milestone in India’s clean energy journey.
According to the latest press release by the Ministry of Petroleum and Natural Gas, the scheme will be implemented from FY 2026-27 to FY 2035-36 and will establish Compressed Biogas as a major pillar of India’s future energy mix.
This initiative will transform the country’s abundant agricultural residue, cattle dung, press mud, municipal organic waste and other biomass resources into clean fuel, organic manure, rural income and national economic value.
The press release also states that GOBARdhan will provide the strong and predictable framework required to take India’s CBG sector to national scale, through assured demand, remunerative and stable pricing, capital assistance, pipeline infrastructure, credit support and technology development.
The scheme aims to increase domestic Compressed Biogas (CBG) production nearly ten-fold, mobilize large-scale private investment and create a vibrant circular bioeconomy across the country.
As per the press release, GOBARdhan consists of six Growth engines across assured CBG offtake, a stable administered pricing framework, capital assistance for eligible projects, development of pipeline infrastructure, a credit guarantee mechanism for MSME-based projects and a dedicated CBG Ecosystem Challenge Fund to support district-level implementation and value chain development.
The scheme also creates conditions for CBG to grow at scale by bringing assured demand, stable pricing, capital assistance, pipeline connectivity, credit support and ecosystem development under one national framework.
Furthermore, the scheme aligns Government’s commitment to energy security, farmers and rural enterprises, waste-to-wealth, Atmanirbhar Bharat and the vision of Viksit Bharat and it is expected to take India’s CBG journey from a strong foundation to a nationally scaled clean energy industry, the press release states.
