India approves GOBARdhan biogas scheme

On August 6, 2026, the India — Union Council of Ministers, chaired by Prime Minister Narendra Modi, approved the GOBARdhan (National Circular Bioenergy) scheme with an outlay of Rs 23,731 crore. The scheme, to be implemented from FY2026-27 to FY2035-36, aims to increase domestic compressed biogas (CBG) production nearly tenfold by creating an integrated framework that offers assured offtake, stable pricing, capital assistance, pipeline connectivity, credit support, and technology development. It introduces a stable administered CBG price of Rs 2,110 per MMBTU with a minimum 10-year pricing framework, and sets blending obligations for City Gas Distribution entities: 3% in FY2026-27, 4% in FY2027-28, and 5% from FY2028-29 onwards in the CNG (Transport) and PNG (Domestic) segments. Eligible greenfield CBG projects will receive capital assistance of up to Rs 2 crore per tonne per day of installed capacity, and a dedicated credit guarantee mechanism will support MSME-based projects. The scheme also provides for pipeline infrastructure and establishes a CBG Ecosystem Challenge Fund. The initiative aims to convert organic waste into clean fuel, generate income for farmers, reduce dependence on imported fossil fuels, and support India's climate commitments. The scheme will be administered by the India — Ministry of Petroleum and Natural Gas.