
India has approved the ₹23,731 crore ($2.5 billion) GOBARdhan National Circular Bioenergy Scheme, aiming to boost compressed biogas (CBG) production nearly tenfold between FY2026-27 and FY2035-36. This marks a major step in India’s clean energy transition, with assured demand, stable pricing, and infrastructure support for biogas plants.
Previously spread across four ministries, the scheme is now consolidated under the Ministry of Petroleum and Natural Gas for unified implementation.
The $2.5B GOBARdhan biogas scheme is a cornerstone of the country’s Atmanirbhar Bharat (self-reliance) vision, reducing dependence on imported LNG, creating rural income streams, and building a domestic clean energy industry worth an estimated ₹75,000 crore.
India currently imports ~50% of its natural gas; the scheme aims to reduce reliance on LNG imports. By reducing reliance on LNG imports through chokepoints like Hormuz, India insulates itself from global supply disruptions.
India imports ~50% of its natural gas, with 55–60% of LNG routed through the vulnerable Strait of Hormuz. By scaling compressed biogas (CBG) production nearly tenfold, the scheme substitutes imported LNG with domestic fuel.
Moreover, the Government estimates suggest savings of over ₹40,000 crore in foreign exchange over the next decade by cutting LNG imports.
India Approves $2.5 Billion Biogas Development
Key Highlights of the $2.5 Billion Biogas Push
- Scheme Name: GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan)
- Budget: ₹23,731 crore (~$2.5 billion)
- Timeline: FY2026-27 to FY2035-36
- Objective: Increase domestic CBG production nearly 10x and reduce fossil fuel imports
- Administered Price: ₹2,110 per MMBtu for CBG, fixed for at least 10 years
- Blending Mandate: 3% blending in FY2026-27, 4% in FY2027-28, 5% from FY2028-29 onwards
Six Growth Engines of the Scheme
- Assured offtake: Mandatory procurement by city gas distribution companies
- Stable pricing: Long-term administered price framework
- Capital assistance: Up to ₹2 crore per tonne/day capacity for greenfield plants
- Pipeline infrastructure: Connecting CBG plants to gas networks
- Credit guarantee: Support for MSME-based projects
- Ecosystem challenge fund: Strengthening district-level implementation and feedstock chains
Impact on India’s Energy & Rural Economy
- Agricultural residue use: Converting ~500 million tonnes annually into clean fuel
- Farmer income: Organized procurement of paddy straw, press mud, and cattle dung
- Waste management: Municipal organic waste transformed into renewable energy and organic manure
- Energy security: Reduced dependence on imported LNG and fossil fuels
- Climate benefits: Lower greenhouse gas emissions and improved air quality
Risks & Challenges
- Feedstock aggregation: Ensuring reliable supply of biomass across regions
- Project viability: Synchronization between CBG plants and city gas distribution networks
- Private investment: Requires consistent policy enforcement
Quick Comparison
| Feature | Before Scheme | With GOBARdhan |
|---|---|---|
| CBG Plants Commissioned | ~216 | Target: 10x growth |
| Pricing | Market-linked, unstable | ₹2,110/MMBtu fixed for 10 years |
| Blending Obligation | None | 3–5% mandatory blending |
| Farmer Participation | Limited | Organized procurement chains |
| Infrastructure | Fragmented | Integrated pipelines & credit support |










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