Menu
Economy

GOBARdhan National Unified Scheme for Compressed Biogas (CBG) (UPSC/RAS/PSI)

Read in:
  • Nodal Ministry- Ministry of Petroleum and Natural Gas (MoPNG)
  • Strategic ImperativesThe Strategic Context- India currently imports nearly 50% of its natural gas requirement. Geopolitical risks and maritime bottlenecks along the Strait of Hormuz (which handles 55%–60% of India's LNG imports) make domestic energy substitution a national security priority. 
  • National Unified Scheme Approval- as the National Circular Bioenergy Scheme with a total outlay of ₹23,731 crore.  Implementation Window- Operates over a 10-year horizon from FY 2026–27 to FY 2035–36.  Institutional Consolidation- Replaces a fragmented 4-ministry model by consolidating all CBG policy, funding, and implementation mechanisms under the Ministry of Petroleum and Natural Gas (MoPNG). 
  • Core National Target- Designed to achieve a ten-fold expansion in domestic CBG production, transforming rural bio-waste into clean energy. 
  • Genesis & Baseline Initiatives: Launched under Swachh Bharat Mission (Grameen) as a Solid and Liquid Waste Management (SWM) component to convert cattle dung, crop residue, and market waste into biogas and bio-slurry.

  • SATAT Initiative- Sustainable Alternative Towards Affordable Transportation encouraged entrepreneurs to set up CBG plants for supply to Oil Marketing Companies (OMCs). 
  • Biomass Aggregation Machinery (BAM) Scheme- Allocated ₹564.75 crore under MoPNG to assist producers in procuring biomass collection machinery (₹248 crore approved for 37 proposals as of March 2026). 
  • Development of Pipeline Infrastructure (DPI) Scheme- Outlay of ₹994.5 crore (FY 2024–25 to FY 2028–29) to fund CBG gas grid connectivity. 
  • Market Development Assistance (MDA)- Provided ₹1,500/MT via the Department of Fertilizers to promote Fermented Organic Manure (FOM) and Liquid FOM (LFOM), disbursing ₹111.72 crore.

The Six Growth Engines under GOBARdhan-

1. Assured CBG Offtake (Blending Obligation Trajectory)

  1. Enforces a mandatory CBG Blending Obligation for City Gas Distribution (CGD) entities in CNG (Transport) and PNG (Domestic) segments-
  1. 3% in FY 2026–27
  2. 4% in FY 2027–28
  3. 5% from FY 2028–29 onwards

2. Stable CBG Pricing Framework

  1. Fixes a government-backed administered procurement price of ₹2,110 per MMBTU (equivalent to ₹105 per kg of CBG) with a 10-year revenue visibility horizon to insulate producers from market volatility.

3. Capital Assistance

  1. Direct capital support of up to ₹2 crore per Ton Per Day (TPD) of installed CBG capacity for greenfield and brownfield expansion projects, covering core machinery and feedstock aggregation assets.

4. Development of Pipeline Infrastructure

  1. Funds both cluster-based and standalone spur pipelines connecting rural CBG plants to national trunk pipelines and CGD distribution networks to drastically lower gas transportation costs.

5. Credit Guarantee Support

  1. Establishes a dedicated credit guarantee mechanism offering up to 85% credit guarantee coverage on institutional loans for MSME-led CBG projects, collateral requirements, and first-time developers.

6. CBG Ecosystem Challenge Fund

  1. Financial support for district-level feedstock mapping, rural aggregation hubs, organic manure value addition, local technological adaptation, and capacity building.

Decade-Long Projected Outcomes (2026–2036 Benefits)-

  1. Forex Import Savings- Projected to save over ₹40,000 crore in foreign exchange by displacing imported LNG.
  2. Fossil Fuel Displacement- Displaces 10 Million Metric Tonnes (MMT) of fossil fuel consumption.
  3. GDP Multiplier- Projected to contribute over ₹75,000 crore to national Gross Domestic Product.
  4. Employment Creation- Generates over 1.5 lakh direct and indirect jobs across rural feedstock collection, logistics, plant operations, and bio-fertilizer sales.
  5. Carbon Mitigation- Cuts over 40 Million Tonnes (MT) of  CO2 equivalent emissions by diverting organic waste from decaying in open landfills or burning in fields.
  6. Organic Fertilizer Yield- Produces 250 MMT of high-grade organic fertilizers (FOM/LFOM), reducing soil degradation and chemical fertilizer dependency.

Infrastructure Progress-

  • Unified Registration Portal- All operational and prospective CBG developers register via gobardhan.eil.co.in to access subsidies.
  • Registered CBG Plants- Total of 1,908 CBG/Bio-CNG plants registered across India as of August 6, 2026.
  • Commissioned Capacity- 217 plants fully commissioned, currently producing 0.4 Million Standard Cubic Meters per Day (MMSCMD) of clean gas.
  • Pipeline Pipeline- 339 plants under active construction, 1,352 plants in pre-construction phases, spanning 250 covered districts.

Strategic Significance

  • Advancing Circular Bioeconomy- Converts bio-waste into energy (CBG) and nutrient-dense soil rejuvenators (FOM), closing the nutrient loop in rural India.
  • Stubble Burning Mitigation- Provides a commercially viable market for paddy straw and crop residue, offering farmers an alternative to open field burning.
  • Synergy with Net-Zero 2070- Serves as a primary driver to meet India's Panchamrit climate targets by decarbonizing freight transport and domestic cooking gas.