India Commits $2.5 Billion to Scale Biogas, Driving Clean Energy Transition

India has approved the ₹23,731 crore ( ~ $2.5 billion) GOBARdhan National Circular lBioenergy 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

In essence, GOBARdhan transforms waste into wealth, positioning India to achieve energy independence, rural prosperity, and climate resilience simultaneously.

ONGC Forms JV with EverEnviro to Establish 10 Compressed Bio-Gas (CBG) Plants in India

Oil and Natural Gas Corporation (ONGC) and EverEnviro Resource Management have formed a 50/50 joint venture to establish 10 compressed biogas (CBG) plants across India. This initiative is part of a broader effort to promote clean energy and reduce the country's carbon footprint. This joint venture is a significant step towards enhancing domestic renewable energy production and reducing India's reliance on imported gas.

The collaboration aligns with the Government of India's initiatives like the Global Bio-Fuels Alliance and the ambitious goal of achieving Net Zero carbon emissions by 2070.

The CBG plants are expected to utilize various types of organic waste to produce biogas, which can be used as a renewable source of energy. By utilizing diverse feedstocks such as agricultural waste, agro-industrial waste, energy crops, and municipal solid waste (MSW), the partnership aims to mitigate approximately 7.5 lakh tons of CO2 equivalent annually.

This move is also emphasizes the transition to clean energy by utilizing agro-industrial waste and MSW. The CBG plants will contribute significantly to mitigating carbon emissions, and the fermented organic manure produced as a byproduct will promote regenerative agriculture, enhancing soil health and fertility.

This aligns with India's commitment to increase the share of natural gas in its energy mix and support the global transition to a low-carbon economy.

The collaboration between ONGC and EverEnviro is an excellent example of how public and private sectors can work together to foster sustainable development and energy security.

EverEnviro Resource Management Private Limited, established by EverSource Capital in 2019, is a leading developer in the Compressed Bio Gas (CBG) sector in India. EverSource Capital is known for being India's leading climate impact investor and is an equal joint venture between the Everstone Group and Europe's Lightsource Bp.

EverEnviro is at the forefront of climate solution businesses, focusing on technologies and businesses that can limit environmental damage and promote sustainability. They are involved in various projects, including waste to energy, construction and demolition waste management, renewable natural gas, and collection and transportation of municipal solid waste.

The company is committed to developing green and brownfield projects that produce a low carbon alternative to fossil fuel-based natural gas. With a significant capital investment, EverEnviro is executing about 20 CBG projects across different states in India, aiming for a robust output of CBG.

EverEnviro's capital initiatives reflect their vision to lead the world in circular and sustainable climate solutions, creating a brighter and cleaner future for all.

It may recalled that under the GOBARdhan initiative of the Union Government, there exist over 1200 plants including 320 CBG plants and 892 Biogas plants, spread across the length and breadth of the country, covering as many as 450 districts, as per the records by Unified Registration Portal for GOBARdhan, on July 2023.

Compressed biogas (CBG) holds significant importance as a renewable energy resource due to its multiple benefits. Firstly, it is produced from organic waste materials through anaerobic digestion, making it a sustainable and renewable source of energy. Secondly, by capturing methane from organic waste, CBG production helps mitigate greenhouse gas emissions that would otherwise be released into the atmosphere.

The compression of biogas increases its energy density, making it a more practical and efficient fuel source for various applications. CBG can be used directly to produce electricity and heat, as an energy source for cooking, and is fully compatible for use in natural gas vehicles.

Moreover, Biogas systems recycle organic waste into renewable energy and soil products, reducing the volume of waste and preventing nutrients from entering waterways. Thus, CBG production can turn waste treatment into a revenue-generating opportunity, create new revenue streams, and offer local jobs in construction, engineering, project management, and more

Moving manure from open lagoons to an airtight biogas system reduces GHG emissions and helps protect air, water, and soil. Biogas systems can produce renewable energy 24/7/365 with a high reliability rate, supporting distributed generation of energy.

CBG is a key component in the transition to a low-carbon economy, offering environmental, economic, and energy benefits while promoting sustainable development and energy security.

Waste To Wealth: 1200+ BioGas Plants Across 450 Indian Districts Registered on GOBARdhan Portal within Just 60 Days

CBG Plant, Ms Goverdhannathji Energies LLP, Kheda, Gujarat

The GOBARdhan initiative of the Union Government, which aims to transform “Waste to Wealth” using a “Whole of Government” approach, has started stimulating investments and reaping good results by creating a nurturing ecosystem for Compressed Biogas (CBG)/Biogas through a slew of policy enablers and attractive benefits.

Galvanizing Organic Bio-Agro Resources Dhan (GOBARdhan) is an umbrella initiative of Govt. of India based on the whole of Government approach. It covers the entire gamut of schemes/programmes/policies promoting the conversion of organic waste like cattle dung/ agri-residue etc. to biogas/ CBG/ Bio CNG.

The Unified Registration Portal for GOBARdhan was launched by the Union Minister for Jal Shakti, Mr Gajendra Singh Shekhawat on 1st June 2023, is witnessing laudable enthusiasm from States/UTs and CBG/Biogas operators/ investors.

In a short span of just 60 days, over 1200 plants including 320 CBG plants and 892 Biogas plants, spread across the length and breadth of the country, covering as many as 450 districts have been registered on the portal.

CBG Plant, Mahindra Waste to Energy Solutions Ltd, Tirupati, Andhra Pradesh

Among these, 52 Commissioned CBG plants registered on the portal have the capacity to process more than 6600 Tonne Per Day (TPD) of organic/agri residue to produce more than 300 TPD of CBG and more than 2000 TPD of Fermented Organic Manure (FOM).

The GOBARdhan portal streamlines the process of registration of functional, under construction or yet-to-start Biogas/Compressed Biogas (CBG) plants across the country.

The registrations are projected to rise further considering the renewed commitment and emphasis of the Government of India in creating a nurturing CBG/ Biogas ecosystem through a slew of enablers such as framing a scheme for Market Development Assistance (MDA) of Rs. 1500/Ton for promotion of organic fertilizers (co-product of GOBARdhan plants), amendment in Fertilizer Control Order to make marketing of FOM/Liquid FOM easier, exemption of central excise duty to CNG blended with CBG to prevent double taxation, inclusion of CBG in the list of activities for trading of carbon credit under bilateral/ cooperative approaches etc.

The CBG/Biogas operators/investors have welcomed the various initiatives under GOBARDhan. The upcoming policies such as fiscal support for biomass aggregation, pipeline connectivity from the CBG plants to the city gas distribution grid etc. are envisioned to create greater awareness and participation for the stakeholders across the value chain.

GOBARdhan initiative has been undertaken with the objective of scientific management of organic/ biodegradable waste while also providing resource and monetary benefits to rural households. The initiative is a convergence of interest and efforts of Government of India, State Governments, private players and other stakeholders.

Anyone who operates or intending to setup a biogas/ CBG/ Bio CNG plant in India can obtain a registration number by registering in this unified regitration portal. The registration number is required to avail benefits/ support from other Ministries/ Departments.

Who can apply

Any government/ private entity operating or intending to setup a Biogas/ CBG/ Bio CNG plant can apply in this portal.

For Biogas plants, the designed gas production capacity should be greater than or equal to 10 cubic meter per day.

For Step by step guideline for registration, check this YouTube video