Blitz Bureau
NEW DELHI: In a bid to strengthen the biogas sector and empower farmers, the Union Cabinet on August 6 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 will establish compressed biogas as a major pillar of India’s future energy mix. It aims to increase domestic Compressed Biogas (CBG) production nearly 10-fold, mobilise large-scale private investment and create a vibrant circular bioeconomy across the country.
According to the Cabinet, ‘GOBARdhan’ establishes a dedicated ‘CBG Offtake Assurance’ framework to provide a reliable and predictable market for producers.
Procurement by City Gas Distribution entities will support achievement of the notified CBG Obligation trajectory of 3 per cent in FY27, 4 per cent in FY28, and 5 per cent from FY29 onwards in the CNG (Transport) and PNG (Domestic) segments.
The framework converts the blending obligation into a clear, long-term demand signal for the industry. Consistent implementation across CGD networks will improve project bankability, support capacity utilisation and encourage long-term private investment, according to an official statement.
Moreover, the scheme introduces a stable administered CBG price of Rs 2,110 per Metric Million British Thermal Unit (MMBTU), supported through a government-backed pricing framework to provide long-term revenue visibility while protecting consumer affordability.
“With a minimum 10-year horizon, the pricing framework will provide producers with durable revenue certainty, commercially attractive returns and a stronger business case for investment and capacity expansion,” the statement noted.
Notably, eligible greenfield CBG projects will receive capital assistance of up to Rs 2 crore per ton per day (TPD) of installed CBG capacity.
