Indian Economy News

Cabinet approves GOBARdhan, India’s National Unified Scheme for Compressed Biogas, with an outlay of Rs. 23,731 crore (US$ 2.49 billion)

The Union Cabinet, chaired by Prime Minister Mr. Narendra Modi, has approved the GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) National Circular Bioenergy Scheme with a total outlay of Rs. 23,731 crore (US$ 2.49 billion). The scheme, to be implemented from FY27 to FY36, aims to transform agricultural residue, cattle dung, municipal organic waste, press mud and other biomass into compressed biogas (CBG), organic manure and rural economic value. Administered by the Ministry of Petroleum and Natural Gas, GOBARdhan seeks to increase domestic CBG production nearly ten-fold while strengthening India's energy security by reducing dependence on imported fossil fuels. Building on initiatives such as SATAT, the Market Development Assistance Scheme, the Biomass Aggregation Machinery Scheme, the Development of Pipeline Infrastructure Scheme and the National Bioenergy Programme, the initiative is expected to scale up India's circular bioeconomy and position CBG as a key component of the country's clean energy mix.

The scheme provides an integrated policy framework through six major components assured CBG offtake, a stable administered CBG pricing mechanism of Rs. 2,110 (US$ 22.15) per MMBTU, capital assistance of up to Rs. 2 crore (US$ 2,09,974) per tonne per day (TPD) of installed capacity, pipeline infrastructure support, credit guarantee for MSME-based projects and a dedicated CBG Ecosystem Challenge Fund. These measures are designed to attract large-scale private investment, improve project viability and accelerate nationwide deployment of CBG infrastructure. GOBARdhan is also expected to generate new income opportunities for farmers, cooperatives and rural entrepreneurs, promote scientific waste management, enhance organic manure production, lower greenhouse gas emissions and support the Government's vision of Atmanirbhar Bharat and Viksit Bharat through a sustainable waste-to-wealth model.

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