GOBARdhan: Fuelling Clean Energy and Rural Growth

Key Highlights:

• The Union Cabinet approved GOBARdhan (National Circular Bioenergy Scheme) with a total outlay of ₹23,731 crore on 06 August 2026.
• The scheme aims for a nearly ten-fold increase in domestic Compressed Biogas (CBG) production by FY 2035-36.
• The Ministry of Petroleum and Natural Gas (MoPNG) is the nodal ministry, consolidating the CBG ecosystem.
• GOBARdhan was originally launched in 2018 under the Swachh Bharat Mission (Grameen) to convert bio-waste into biogas.
• It introduces a CBG Obligation for City Gas Distribution entities, starting at 3% in FY 2026-27 and reaching 5% from FY 2028-29.
• A stable administered price of ₹2,110 per MMBTU (₹105 per kg) for CBG is established for a minimum ten-year horizon.
• The scheme is projected to save over ₹40,000 crore in forex and generate over 1.5 lakh jobs over a decade.

Detailed Insights:

• India currently imports nearly 50% of its natural gas, making domestic energy production a strategic priority.
• The scheme unifies the previously fragmented CBG ecosystem under MoPNG for better coordination and accelerated growth.
• Its vision includes India's waste fueling growth, villages becoming clean energy centers, and farmers partnering in energy security.
• Previous initiatives like Sustainable Alternative Towards Affordable Transportation (SATAT) and Market Development Assistance (MDA) Scheme laid the foundation.
• GOBARdhan provides capital assistance of up to ₹2 crore per ton per day (TPD) for eligible greenfield CBG projects.
• A dedicated Credit Guarantee Mechanism offers up to 85% coverage on eligible loans for MSME-based CBG projects.
• The CBG Ecosystem Challenge Fund supports district-level implementation, feedstock assessment, and technology adoption.
• As of 06 August 2026, 1,908 CBG plants are registered on the GOBARdhan Unified Registration Portal, with 217 commissioned.
• The scheme is expected to add over ₹75,000 crore to national GDP and reduce CO2 emissions by more than 40 MT.

Key Concepts Involved:

• GOBARdhan: A national scheme to convert organic waste into Compressed Biogas (CBG) and organic manure.
• Compressed Biogas (CBG): A purified form of biogas, chemically equivalent to natural gas, produced from organic waste.
• Circular Bioeconomy: An economic model that uses biological resources sustainably, minimizing waste and maximizing resource value.
• CBG Obligation: A mandate requiring City Gas Distribution entities to blend a certain percentage of CBG into their fuel mix.