India approves Rs 23,731 crore GOBARdhan bio‑CNG scheme

GOBARdhan compressed biogas India Rs 23,731 crore foreign exchange savings

The Union Cabinet of India approved the GOBARdhan (National Circular Bioenergy) Scheme with a total outlay of Rs 23,731 crore. The programme will run from FY 2026‑27 to FY 2035‑36 and seeks to boost domestic production of compressed biogas (CBG) nearly ten‑fold.

The scheme will use agricultural residue, cattle dung, municipal organic waste and sugar‑industry waste to generate CBG. It provides an assured offtake framework, an administered price of Rs 2,110 per MMBTU, capital assistance of up to Rs 2 crore per tonne per day for eligible greenfield projects, and an 85 % credit‑guarantee for MSMEs. Blending targets are set at 3 % in FY 2026‑27, 4 % in FY 2027‑28 and 5 % from FY 2028‑29 onward for CNG and piped natural gas.

The government projects foreign‑exchange savings of more than Rs 40,000 crore, the creation of about 1.5 lakh jobs, a reduction of over 40 million tonnes of CO₂ emissions and the production of roughly 250 million tonnes of organic fertilizer. City Gas Distribution companies will procure CBG to meet the mandatory blending obligations, linking new plants to existing gas‑distribution networks.

Entities: Adani TotalEnergies Biomass Limited · City Gas Distribution (CGD) companies · City Gas Distribution Companies · Compressed Biogas (Bio‑CNG) · Compressed Biogas (CBG) · GOBARdhan (Galvanising Organic Bio‑Agro Resources Dhan) · GOBARdhan (National Circular Bioenergy) Scheme · GOBARdhan National Circular Bioenergy Scheme · Government of India · Prime Minister Narendra Modi · Reliance Bio Energy Limited · Union Cabinet of India

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[● 6 SOURCES] The scheme will use agricultural residue, cattle dung, municipal waste and sugar‑industry waste to produce compressed biogas. (Feedstock description)
[● 6 SOURCES] The GOBARdhan scheme will be implemented from fiscal year 2026‑27 to 2035‑36. (Implementation timeline)
[● 6 SOURCES] Eligible greenfield CBG projects can receive capital assistance of up to Rs 2 crore per tonne per day of installed capacity. (Capital assistance)
[● 6 SOURCES] Blending targets are set at 3 % in FY2026‑27, 4 % in FY2027‑28 and 5 % from FY2028‑29 onward. (Blending obligations)
[● 6 SOURCES] The administered price for Bio‑CNG under the scheme is Rs 2,110 per MMBTU. (Price mechanism)
[○ 1 SOURCE] India’s bio‑CNG sector includes companies such as Uzzala Bio Energy Solutions, Reliance Bio Energy Limited and Adani TotalEnergies Biomass Limited. (bd8752ee-a268-4954-9348-564ea2d68fc5)
[● 6 SOURCES] The scheme aims to increase domestic Bio‑CNG production nearly tenfold over the next decade. (Production target)
[● 6 SOURCES] The Union Cabinet approved a Rs 23,731 crore national scheme for compressed biogas (Bio‑CNG) in India. (Union Cabinet approval)
[● 5 SOURCES] The scheme is projected to save more than Rs 40,000 crore in foreign exchange and generate about 150,000 jobs. (Economic impact)