GOBARdhan Scheme Formally Launched: A 10-Fold Jump in Compressed Biogas and India's Natural Gas Goal
The Ministry of Petroleum and Natural Gas formally launched the ₹23,731-crore GOBARdhan scheme at Bharat Mandapam, New Delhi. It aims to raise compressed biogas (CBG) output about 10 times, from about 0.4 million standard cubic metres per day (mmscmd) today to 4-6 mmscmd.
CBG is a methane-rich clean fuel made by processing organic waste such as crop residue, animal dung, food waste and other biomass. The scheme gives two kinds of help: capital assistance (money to build plants) and guaranteed offtake (an assured buyer for the fuel).
Capital support is up to ₹30 crore per CBG project. New (greenfield) plants get ₹1.25 crore per tonne per day (TPD) of eligible capacity. Brownfield expansions get 50% of that rate for new capacity. Old biogas plants upgraded to make CBG get ₹0.60 crore per TPD, capped at ₹5 crore per project.
Producers get assured offtake of up to 100% of eligible output at an administered price of ₹2,110 per million British thermal units (MMBTU), which is about ₹98 per kg.
The government expects the scheme to replace about 10 million tonnes of fossil fuel, cut over 40 million tonnes of CO2, produce about 250 million tonnes of organic manure, save over ₹40,000 crore in fuel imports, add over ₹75,000 crore to GDP and create over 1.5 lakh jobs.
The scheme also supports India's target of raising the share of natural gas in its energy basket to 15% by 2030, from about 6-7% now.
GOBARdhan Scheme: Origin and Evolution
GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) is a government programme that turns cattle dung, crop leftovers and other wet waste into biogas, compressed biogas and organic manure. It began in 2018 as a village cleanliness and waste-to-wealth idea under the Swachh Bharat Mission (Grameen). In 2026, it was rebuilt into a single national scheme for the whole CBG value chain. The idea is simple: waste that causes pollution and smell becomes fuel for vehicles and manure for farms.
The formal launch puts the Cabinet-approved scheme into action. The two big promises, money to build plants and a guaranteed buyer at a fixed price, are meant to remove the two main reasons CBG plants have failed in the past: high start-up cost and uncertain sales.
Compressed Biogas (CBG) and the SATAT Scheme
Compressed Biogas is a clean fuel made from wet waste such as cow dung, crop residue, press mud from sugar mills and kitchen waste. The waste is broken down in a closed tank without air, which gives raw biogas. This gas is cleaned to remove carbon dioxide and other gases, and packed under high pressure. The final fuel is mostly methane, almost the same as CNG, so it can run vehicles or be mixed into city gas pipelines.
The new GOBARdhan offtake price and capital support are the push SATAT lacked. With the blending obligation rising to 3% this year, city gas companies need much more CBG, and the 10-fold output target is meant to meet that demand.
Gas-Based Economy: India's Natural Gas Target
A gas-based economy means a country where natural gas supplies a large share of the energy used by homes, vehicles, factories and power plants. India has set a target to raise natural gas to 15% of its primary energy mix by 2030, from about 6-7% now. Natural gas is a fossil fuel, but it burns much more cleanly than coal or oil. So India sees it as a "bridge fuel": a cleaner fuel to use while the country slowly moves to renewable energy like solar and wind.
The government links the new GOBARdhan scheme directly to the 15% gas target. If CBG output rises from 0.4 to 4-6 mmscmd, part of the gas India now imports as LNG can be replaced by gas made from its own farm and city waste.
- GOBARdhan scheme outlay: ₹23,731 crore; approved by the Union Cabinet on 6 August 2026 for FY 2026-27 to FY 2035-36
- CBG output target: from about 0.4 mmscmd to 4-6 mmscmd (about 10-fold)
- Capital assistance: up to ₹30 crore per project; greenfield ₹1.25 crore per TPD; brownfield 50% of greenfield rate; upgraded biogas plants ₹0.60 crore per TPD (capped at ₹5 crore)
- Assured offtake: up to 100% of eligible output at ₹2,110 per MMBTU (about ₹98 per kg)
- Expected gains: over ₹40,000 crore import savings; over ₹75,000 crore added to GDP; over 1.5 lakh jobs
- Environment: about 10 million tonnes of fossil fuel replaced; over 40 million tonnes of CO2 cut; about 250 million tonnes of organic manure
- CBG Blending Obligation: 1% (2025-26), 3% (2026-27), 4% (2027-28), 5% from 2028-29
- Natural gas share target: 15% by 2030, from about 6-7% now