The petroleum ministry is developing an integrated Sampoorn Gobardhan Scheme to provide assured offtake, pricing certainty and long-term policy visibility to compressed biogas producers, as India looks to establish 5,000 CBG plants with annual production of 15 million metric tonnes by 2030.
The proposed framework will seek to resolve some of the biggest constraints holding back investment in the sector, including feedstock aggregation, utilisation of fermented organic manure and uncertainty over buyers and prices. It will serve as the central pillar of India’s future CBG ecosystem, Alok Tripathi, Joint Secretary in the Ministry of Petroleum and Natural Gas, said at a CII conference in New Delhi.
“We would like to have an offtake assurance mechanism so that whatever CBG is produced is procured. No molecule of CBG should be wasted — that should be our intent,” Tripathi said.
The announcement comes as a Confederation of Indian Industry study said the government’s 2030 target would require a fundamental transition from policy-led growth to a commercially viable, market-driven renewable gas economy. While the CBG Blending Obligation provides minimum assured demand and improves project bankability, the report said long-term sustainability would require buyers across industry, transport, commercial establishments, institutions and city gas distribution networks.
Industry Recommendations
The study recommended rationalising GST to 5% across the entire CBG value chain, including critical machinery, and operationalising Renewable Gas Certificates through transparent pricing and trading. It also called for private trading of fermented organic manure and mandatory procurement by fertiliser companies at remunerative prices.
Other proposals include expanding pipeline and city gas infrastructure with dedicated CBG injection facilities, co-locating plants with CNG stations, strengthening biomass aggregation and establishing a National Bioenergy Mission to coordinate implementation across ministries and states.
“CBG has some inherent advantages. It is a sustainable solution to enhance our energy security, improves the rural economy, converts waste to wealth and promotes the circular economy,” Tripathi said.
CII Director General Chandrajit Banerjee said CBG presented a strategic opportunity to reduce India’s dependence on imported fossil fuels while lowering emissions, improving waste management and creating additional income for farmers.
Mitigating Commercial Uncertainties
Ranjit Rath, Chairman of the CII National Hydrocarbon Committee and CMD of Oil India, said technology was established, but feedstock assurance and aggregation remained critical. “With assurances of offtake and price stability, it is time for all of us to join this momentum,” he said.
The proposed scheme seeks to connect these elements — feedstock, financing, pricing, offtake and by-product sales — into a single policy framework, addressing the commercial uncertainties that have constrained the scale-up of CBG projects despite strong policy support.