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New Delhi : The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the ₹23,731 crore GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) Scheme, a major initiative aimed at converting organic waste into clean energy while boosting rural incomes and strengthening India’s circular economy.
The scheme, to be implemented by the Ministry of Petroleum and Natural Gas from FY 2026-27 to FY 2035-36, seeks to make Compressed Biogas (CBG) a key component of India’s clean energy transition. It aims to significantly expand domestic CBG production through assured market support, stable pricing, financial assistance, pipeline connectivity, and easier access to credit.
By utilising agricultural residue, cattle dung, press mud, and municipal organic waste, the initiative is expected to generate clean fuel, produce organic manure, reduce waste, and create additional income opportunities for farmers, rural entrepreneurs, MSMEs, and women-led enterprises.
The scheme provides assured CBG offtake through City Gas Distribution networks, a long-term pricing framework of ₹2,110 per MMBTU, capital assistance of up to ₹2 crore per tonne per day of installed capacity, support for pipeline infrastructure, credit guarantees, and a dedicated challenge fund to strengthen implementation at the district level.
The GOBARdhan Scheme builds on existing programmes such as SATAT, Market Development Assistance (MDA), the Bioenergy Assistance Mechanism (BAM), and the National Bioenergy Programme, under which more than 200 CBG plants have already been established across the country.
The government said the initiative will strengthen India’s energy security, attract private investment, promote sustainable waste management, and accelerate the vision of Atmanirbhar Bharat and Viksit Bharat by turning organic waste into a valuable economic resource.
