The Union Cabinet has approved ‘GOBARdhan’, the National Circular Bioenergy Scheme, with a total financial outlay of ₹23,731 crore. The scheme will be implemented from FY27 to FY36 to establish Compressed Biogas (CBG) as a key component of India’s energy mix.
The scheme introduces a CBG Offtake Assurance framework with mandatory obligations for City Gas Distribution entities at 3% in FY27, 4% in FY28, and 5% from FY29 onwards in the Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) segments. An administered CBG price of ₹2,110 per Metric Million British Thermal Unit (MMBTU) has been introduced for a 10-year period.
Eligible greenfield CBG projects will receive capital assistance of up to ₹2 crore per ton per day (TPD) of installed capacity. The scheme also supports pipeline infrastructure, a Credit Guarantee mechanism for MSME-based projects, and a ‘CBG Ecosystem Challenge Fund’ to accelerate district-level implementation.
