The Union Cabinet has approved a major new scheme called GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) with a total outlay of Rs 23,731 crore. The scheme intends to turn India’s agricultural waste, cattle dung and other organic materials into clean fuel called Compressed Biogas (CBG).
It will run from FY2026-27 to FY 2035-36 and is likely to increase domestic CBG production nearly ten-fold.
What is Compressed Biogas (CBG)?
CBG is a clean, renewable gas made from organic waste like cattle dung, crop residue, press mud from sugar mills and municipal organic waste. It is chemically similar to natural gas and can be utilised in vehicles (as CNG) and for household cooking (as PNG).
All about GOBARdhan scheme
India’s demand for natural gas is increasing. At the same time, the country wants to reduce its dependence on imported fossil fuels. GOBARdhan aims to use India’s own organic waste to produce clean energy, assist farmers and create rural jobs.
As per the official statement of PIB, the scheme reflects a clear vision. “India’s waste will fuel India’s growth. India’s villages will become centres of clean energy production. India’s farmers will become partners in the nation’s energy security.”
Civil Aviation Minister Ram Mohan Naidu Kinjarapu termed it as “major push to expand domestic CBG production, boost India’s energy security and create new opportunities for our farmers and the rural economy.”
Key features of GOBARdhan scheme
The scheme has six main components termed ‘growth engines’.
-Assured CBG Offtake: City Gas Distribution firms will purchase CNG to meet mandatory blending targets (3% in 2026-27, 4% in 2027-28 and 5% from 2028-29 onwards).
-Stable pricing: Producers will be provided a fixed price of Rs 2,110 per MMBTU for at least 10 years, offering them long-term income certainty.
-Credit Guarantee Support: This will allow small and medium businesses to get loans for setting up plants.
-CBG Ecosystem Challenge Fund: It supports local planning, feedstock collection, technology, and awareness at the district level.
-Capital support: New plants can get up to Rs 2 crore per tonne per day of capacity. Expansion of existing plants will also be eligible for this.
-Pipeline infrastructure: Support to connect CBG plants to gas pipelines so that fuel can reach to the consumers easily.
What are the benefits of this scheme?
Farmers and rural entrepreneurs will get new income opportunities by selling agricultural waste and cattle dung. The scheme is expected to support a cleaner environment through better waste management and lower greenhouse gas emissions. As a by-product, more organic manure will be produced, which can help enhance soil health. At the same time, energy security will boost as India produces more of its own clean gas. The stable pricing and government assistance are expected to attract greater investment.
The GOBARdhan will “transform the country’s abundant agricultural residue, municipal organic waste, cattle dung, press mud, and other biomass resources and other biomass resources into clean fuel and organic manure,” as per a government official statement. It will also generate rural income and create national economic value.
Building on existing progress
India has already built more than 200 CBG plants under earlier programmes such as Sustainable Alternative Towards Affordable Transportation (SATAT). GOBARdhan now brings all efforts under one national framework to ramp production much faster. GOBARdhan scheme is a large national effort to convert everyday organic waste into clean energy while creating income opportunities in rural India and reducing India’s dependence on imported fuels.