GOBARdhan: National Circular Bioenergy Scheme Approval
The Union Cabinet approved the GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme on August 6, 2026, with a total outlay of ₹23,731 crore to be implemented from FY 2026-27 to FY 2035-36. The scheme aims to address India's energy security concerns, particularly given that nearly 50% of natural gas requirements are met through imports, with 55-60% of LNG imports vulnerable to disruptions along the Strait of Hormuz.
Scheme Objectives and Implementation
The consolidated scheme, now entirely under the Ministry of Petroleum and Natural Gas (MoPNG), seeks to increase domestic Compressed Biogas (CBG) production nearly ten-fold, mobilize large-scale private investment, and create a vibrant circular bioeconomy. The vision centers on turning waste into energy, making villages centers of clean energy production, and involving farmers as partners in national energy security.
Six Core Components
The scheme is structured around six integrated components: (1) Assured CBG Offtake with mandatory blending obligations for City Gas Distribution entities - 3% in FY 2026-27, 4% in FY 2027-28, and 5% from FY 2028-29 onwards in CNG and PNG segments; (2) Stable CBG Pricing Framework with government-backed administered price of ₹2,110 per Metric Million British Thermal Unit (MMBTU) or ₹105 per kilogram, guaranteed for minimum ten years; (3) Capital Assistance of up to ₹2 crore per ton per day of installed CBG capacity for greenfield projects, extending to brownfield expansions; (4) Development of Pipeline Infrastructure with cluster-based and standalone connectivity solutions; (5) Credit Guarantee Support providing 85% coverage on eligible loans for MSME projects; and (6) CBG Ecosystem Challenge Fund supporting feedstock assessment, aggregation infrastructure, and technology adoption.
Current Infrastructure and Progress
As of August 6, 2026, the GOBARdhan Unified Registration Portal shows 1,908 registered CBG/Bio-CNG plants nationwide, with 217 commissioned plants producing 0.4 Million Standard Cubic Meters per Day (MMSCMD) and 339 plants under construction. Previous supporting schemes include the Biomass Aggregation Machinery Scheme (₹564.75 crore outlay, 37 proposals approved with ₹248 crore assistance), Development of Pipeline Infrastructure Scheme (₹994.5 crore outlay for FY 2024-29, ₹56.31 crore sanctioned), and Market Development Assistance Scheme providing ₹1,500 per metric tonne for organic fertilizers (₹111.72 crore released up to February 2026).
Expected Outcomes and Benefits
Over the decade-long implementation, GOBARdhan is expected to deliver: ten-fold growth in CBG production; over ₹40,000 crore in forex savings from reduced import dependence; displacement of 10 MMT of fossil fuel use; over ₹75,000 crore added to national GDP; generation of over 1.5 lakh jobs across the value chain; reduction of over 40 MT of CO₂ emissions through waste diversion from landfills; and production of 250 MMT of organic fertilizer. The scheme represents a comprehensive approach to transforming India's organic resources into clean energy while supporting rural prosperity and economic value creation.