Indian Government Support

The Government of India has introduced a series of initiatives to promote Compressed Biogas (CBG), strengthen India's energy security, reduce dependence on imported fossil fuels and create economic value from agricultural and organic waste.

Two important initiatives supporting the development of the CBG sector are SATAT and the recently approved GOBARdhan – National Circular Bioenergy Scheme.

GOBARdhan – National Circular Bioenergy Scheme

India's New National Framework for Compressed Biogas

GOBARdhan stands for Galvanizing Organic Bio-Agro Resources Dhan. The Union Cabinet approved GOBARdhan, India's National Circular Bioenergy Scheme, on 6 August 2026, with a total outlay of ₹23,731 crore.

The scheme will be implemented from FY 2026-27 to FY 2035-36 and aims to accelerate the development of India's Compressed Biogas (CBG) sector by creating an integrated framework for assured demand, stable pricing, capital assistance, pipeline connectivity and access to finance.

GOBARdhan is designed to transform agricultural residue, cattle dung, press mud, municipal organic waste and other biomass resources into clean fuel, organic manure, rural income and economic value.

Key Scheme Highlights

• Total Scheme Outlay: ₹23,731 crore
• Union Cabinet Approval: 6 August 2026
• Implementation Period: FY 2026-27 to FY 2035-36
• Target: Nearly ten-fold increase in domestic CBG production
• Capital Assistance: Up to ₹2 crore per tonne per day (TPD) of installed CBG capacity for eligible greenfield projects, subject to applicable scheme guidelines and conditions
• Nodal Ministry: Ministry of Petroleum and Natural Gas

Why GOBARdhan?

India's demand for natural gas is growing across transportation, households, industry and commercial sectors. GOBARdhan aims to increase domestic production of renewable gaseous fuel and reduce dependence on imported fossil fuels.

CBG is chemically equivalent to natural gas and can be integrated into India's existing gas ecosystem. The scheme therefore combines renewable energy production with the existing gas infrastructure of the country.

At the local level, CBG plants can create circular economies around agricultural residue, cattle dung and other organic resources, generating opportunities in feedstock supply, transportation, plant operations and organic manure production.

Six Growth Engines under GOBARdhan

GOBARdhan brings together six key components designed to support the development and expansion of India's CBG ecosystem.

1. Assured CBG Offtake

GOBARdhan establishes a dedicated CBG Offtake Assurance framework to provide producers with a reliable and predictable market.

Procurement by City Gas Distribution entities will support the notified CBG Obligation trajectory:

• 3% in FY 2026-27
• 4% in FY 2027-28
• 5% from FY 2028-29 onwards

The obligation applies to CNG for transportation and PNG for domestic segments, providing a long-term demand signal for the CBG industry.

2. Stable CBG Pricing Framework

GOBARdhan introduces a government-backed administered CBG price of ₹2,110 per Metric Million British Thermal Unit (MMBTU).

The pricing framework is intended to provide long-term revenue visibility while maintaining consumer affordability through a combination of Government support and market-based cost sharing.

The framework has a minimum ten-year horizon, providing producers with greater revenue certainty and supporting investment and capacity expansion.

3. Capital Assistance

Eligible greenfield CBG projects may receive capital assistance of up to ₹2 crore per tonne per day (TPD) of installed CBG capacity, subject to applicable scheme guidelines and conditions.

The support extends beyond core plant machinery to critical value-chain assets including feedstock aggregation, organic manure processing and value addition. Brownfield projects expanding their production capacity will also be eligible.

4. Development of Pipeline Infrastructure

The scheme supports both cluster-based and standalone pipeline infrastructure connecting CBG plants with trunk pipelines and City Gas Distribution networks.

Improved pipeline connectivity can reduce evacuation costs, improve reliability, expand market reach and enable greater utilisation of domestically produced CBG.

5. Credit Guarantee Support

GOBARdhan provides a dedicated credit guarantee mechanism to strengthen lender confidence and improve access to institutional finance for eligible MSME-based CBG projects.

The mechanism is intended to reduce lending risk, improve access to affordable finance and reduce collateral requirements, helping MSMEs, women entrepreneurs and first-time developers participate in the CBG industry.

6. CBG Ecosystem Challenge Fund

A dedicated CBG Ecosystem Challenge Fund will support district-level implementation and strengthen local value chains.

• Feedstock resource assessment and mapping
• Feedstock aggregation infrastructure
• District-level CBG development planning
• Technology adoption and process improvement
• Value addition of organic manure
• Capacity building and stakeholder awareness

Expected Impact of GOBARdhan

GOBARdhan is designed to take India's CBG sector from its existing foundation to national scale.

• Nearly ten-fold growth in domestic CBG production
• Greater energy security through increased domestic production of renewable gaseous fuel
• Reduced dependence on imported fossil fuels
• Increased private investment in the CBG sector
• New income opportunities for farmers, feedstock aggregators, cooperatives and rural entrepreneurs
• Productive utilisation of agricultural residue, cattle dung, municipal organic waste and other biomass resources
• Lower greenhouse gas emissions through replacement of fossil fuels and productive utilisation of organic waste
• Expansion of the organic manure economy through increased production and utilisation of FOM and LFOM

Expected Benefits Over the Decade

• Ten-fold growth in CBG production over the decade
• More than ₹40,000 crore in forex savings through reduced energy import dependence
• Displacement of approximately 10 MMT of fossil fuel use
• More than ₹75,000 crore contribution to national GDP
• More than 1.5 lakh jobs across the value chain
• More than 40 MT of CO₂ emissions avoided through diversion of waste from landfills
• Production of approximately 250 MMT of organic fertilizer

GOBARdhan Unified Registration Portal

Anyone operating or intending to establish a CBG/Bio-CNG plant in India can obtain a registration number through the GOBARdhan Unified Registration Portal.

The registration number is required to avail benefits and support from the Ministry of Petroleum and Natural Gas.

Visit GOBARdhan Unified Registration Portal

SATAT – Sustainable Alternative Towards Affordable Transportation

Before GOBARdhan, the Government of India developed the SATAT initiative as an important foundation for the development of the Compressed Biogas sector.

SATAT was designed to encourage entrepreneurs to establish CBG plants and produce CBG from waste and biomass for supply to Oil Marketing Companies (OMCs) for use as an automotive and industrial fuel.

The initiative helped establish the foundations for a CBG ecosystem in India through the development of production, procurement and offtake arrangements.

GOBARdhan now builds upon this foundation by bringing multiple elements of the CBG value chain together under a single national framework.

Government Support for the CBG Sector

Official Government Documents

The following official Government of India documents provide detailed information about the GOBARdhan scheme:

Government References

• Press Information Bureau – Cabinet approves GOBARdhan
• GOBARdhan Unified Registration Portal
• SATAT – Compressed Biogas Initiative

Note: Scheme eligibility, coverage, financial assistance, disbursement and other benefits are subject to the applicable Government guidelines, conditions and approvals. The information on this page is provided for general information and should not be treated as financial or investment advice.