Cabinet Approved Cost For GOBARdhan Scheme, Pg10

Key Highlights:

• The Union Cabinet has approved a unified circular bioenergy scheme under the GOBARdhan initiative with an outlay of ₹23,731 crore.
• The scheme aims to significantly boost Compressed Biogas (CBG) production in India, targeting a nearly ten-fold increase over the next decade.
• It will be implemented for a period of ten years, from the financial year 2026-27 to 2035-36.
• The Ministry of Petroleum and Natural Gas will administer this scheme, integrating the entire CBG value chain.

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Detailed Insights:

• The full form of GOBARdhan is Galvanizing Organic Bio-Agro Resources Dhan, emphasizing the conversion of organic waste into valuable resources.
• This initiative is a crucial part of the Swachh Bharat Mission (Grameen) Phase II, focusing on Solid and Liquid Waste Management and achieving ODF-plus status in villages.
• The scheme is structured around six key pillars: assured offtake, stable pricing, capital assistance, pipeline infrastructure, credit guarantee support, and an innovation challenge fund.
• City Gas Distribution (CGD) entities will procure CBG to meet mandatory blending obligations, starting at 3% in FY27 and rising to 5% from FY29 onwards.
• An administered price of ₹2,110 per Metric Million British Thermal Unit (MMBTU) has been fixed for CBG, providing long-term revenue certainty for producers.
• Eligible greenfield CBG projects will receive capital assistance of up to ₹2 crore per tonne per day (TPD) of installed capacity.
• The scheme utilizes diverse feedstocks such as agricultural residue, cattle dung, municipal organic waste, and press mud to produce CBG and organic manure.
• It aims to strengthen India's energy security, reduce reliance on imported fossil fuels, create 1.5 lakh jobs, and foster a vibrant circular bioeconomy.

Key Concepts Involved:

• GOBARdhan Scheme: A government initiative to convert organic waste, particularly cattle dung and agricultural residue, into biogas, Compressed Biogas (CBG), and organic manure.
• Compressed Biogas (CBG): A purified form of biogas, primarily methane, which is chemically identical to natural gas and can be used as a clean, renewable fuel.
• Circular Bioeconomy: An economic model that focuses on using renewable biological resources and transforming organic waste streams into value-added products, materials, and bioenergy, thereby closing resource loops.