The Union Cabinet approved GOBARdhan, the National Circular Bioenergy Scheme, on 6 August 2026, with a total outlay of ₹23,731 crore. The scheme brings India's compressed biogas (CBG) push under one unified, ten-year programme for the first time.

GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) is a Central government scheme to turn organic waste into clean fuel. It converts cattle dung, crop residue, press mud, and municipal organic waste into compressed biogas and organic manure, giving farmers and rural entrepreneurs a new income stream while cutting India's dependence on imported fuel.

Basic Details

  • Ministry: Ministry of Petroleum and Natural Gas.
  • Approved: 6 August 2026, by the Union Cabinet.
  • Implementation Period: FY 2026-27 to FY 2035-36 (ten years).
  • Beneficiaries: CBG plant developers and rural entrepreneurs, farmers supplying feedstock, and City Gas Distribution (CGD) entities as offtakers.
  • Financial Outlay: ₹23,731 crore overall, including capital assistance of up to ₹2 crore per tonne per day of installed capacity for eligible greenfield CBG projects; brownfield expansion projects are also eligible.

Aim and Objectives

  • To establish compressed biogas as a major pillar of India's future energy mix, targeting nearly a ten-fold increase in domestic CBG production over the scheme period.
  • To convert agricultural residue, cattle dung, press mud, and municipal organic waste into clean fuel and organic manure, strengthening both energy security and rural livelihoods.
  • To bring the entire CBG value chain — offtake, pricing, capital support, infrastructure, credit, and technology development — under one integrated platform instead of scattered schemes.

Key Features

  • Assured Offtake Framework: City Gas Distribution entities must procure CBG to meet blending targets of 3% in FY 2026-27, 4% in FY 2027-28, and 5% from FY 2028-29 onwards, across both the transport (CNG) and domestic (PNG) segments.
  • Administered Pricing: A fixed price of ₹2,110 per MMBTU has been approved, giving CBG producers long-term revenue certainty.
  • Capital Assistance: Eligible greenfield CBG plants can receive capital support of up to ₹2 crore per tonne per day of installed capacity; brownfield expansions also qualify for support.
  • Six Integrated Components: The scheme combines offtake assurance, administered pricing, capital assistance, pipeline connectivity, credit support, and technology/ecosystem development into a single framework.

Significance

  • Energy Security: A near ten-fold rise in domestic CBG production would cut India's reliance on imported natural gas and LPG.
  • Circular Economy Push: Converts waste that would otherwise be burnt or dumped — stubble, cattle dung, municipal organic waste — into clean fuel and manure, easing both stubble-burning and landfill pressure.
  • Rural Income: Creates a new, steady income stream for farmers and rural entrepreneurs who supply feedstock or set up CBG plants.