The Union Cabinet has approved the ₹23,731 crore GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) Scheme to significantly expand Compressed Biogas (CBG) production across the country. The initiative aims to strengthen India’s energy security, reduce dependence on imported fossil fuels, and create new livelihood opportunities in rural areas by converting organic waste into clean fuel.
The scheme will be implemented from 2026-27 to 2035-36 under the Ministry of Petroleum and Natural Gas. It focuses on converting agricultural residue, cattle dung, sugar industry waste, municipal organic waste, and other biomass into compressed biogas and organic manure.
According to the government, the programme is expected to increase domestic CBG production nearly tenfold, attract private investment, improve waste management, and boost farmers’ incomes through the sale of organic waste and bio-manure.
Compressed Biogas is a purified form of biogas produced from organic waste. Similar in composition to natural gas, it can be supplied through existing gas pipelines or used as fuel in CNG vehicles, providing a cleaner alternative to conventional fossil fuels.
The scheme is built around six key pillars to accelerate the growth of the CBG sector. These include creating assured demand through mandatory blending of CBG with transport CNG and domestic piped natural gas, offering a fixed procurement price to ensure stable returns for producers, providing financial assistance for new and expanded CBG plants, developing pipeline infrastructure for easier transportation, introducing a credit guarantee mechanism to improve financing for MSMEs, and establishing a dedicated challenge fund to support district-level planning, technology adoption, and biomass resource management.
With this initiative, the government aims to promote a circular bioeconomy, improve sustainable waste management, generate renewable energy, and contribute to India’s long-term clean energy and climate goals.
