Union Cabinet Approves GOBARdhan To Convert Waste Into Energy
The Union Cabinet on August 8, 2026, approved Galvanising Organic Bio-Agro Resources Dhan (GOBARdhan), the National Circular Bioenergy Scheme to convert organic waste into clean energy.
GOBARdhan scheme has an outlay of ₹23,731 crore and will run for the duration of FY 2027-27 till FY 2035-36.
The stated purpose of the scheme is to establish compressed biogas (CBG) as a major part of India’s energy mix. It aims to increase domestic CBG production by nearly ten-fold, while mobilizing large-scale private investment and creating a circular bio-economy across the country.
A press release put out by the Press Information Bureau stated the GOBARdhan scheme will increase India’s energy security by increasing its production of renewable gaseous fuel and lowering the dependence on foreign fossil fuel. It will promote scientific waste management through productive use of agricultural residue, cattle dung, municipal organic waste and other biomass resources. By replacing fossil fuels and better utilizing organic waste, GOBARdhan will also help in lowering greenhouse gases.
GOBARdhan will establish a dedicated CBG offtake assurance framework wherein city gas distribution entities will help in achieving the certified obligation trajectory. The CNG obligation in the CNG (Transport) and PNG (Domestic) segments has been notified as 3% in FY 2026-27, 4% in FY 2027-28 and 5% from FY 2028-29 onwards.
To assure CBG producers of revenue certainty, attractive returns and a business case for investment and capacity expansion, the Government is backing a pricing framework. Though it, GOBARdhan has fixed the price of CBG at Rs.2,110 per Metric Million British Thermal Unit (MMBTU). This pricing framework will provide a revenue visibility of at least yean years to the producers.
The GOBARdhan scheme will also support all eligible greenfield and brownfield projects through capital assistance of up to Rs 2 crore per ton per day (TPD) of installed CBG capacity. This support will encompass critical value-chain assets for feedstock aggregation, organic manure processing and value addition, in addition to core plant machinery.
This component will lower the initial capital burden, accelerate financial closure and expand participation by private developers, MSMEs, cooperatives and rural entrepreneurs.
The GOBARdhan scheme aims to increase the usage of domestic CBG by supporting cluster-based as well as standalone pipeline infrastructure that connects CBG plants with trunk pipelines and city gas distribution networks. This will, in turn, reduce evacuation costs, improve reliability, expand market reach.
The GOBARdhan scheme will also improve lender confidence by sharing a portion of lending risk through a dedicated credit guarantee mechanism. the credit guarantee mechanism is designed to ease access to affordable finance, at the same time reducing collateral requirements, thus supporting faster project development. Eligible MSME-based CBG will benefit from increased institutional credit, thus expanding their participation as well as that of women entrepreneurs and first-time developers.
GOBARdhan will also establish a CBG Ecosystem Challenge Fund that will accelerate district-level implementation and strengthen local value chains across the CBG ecosystem.
The Fund will support feedstock resource assessment and mapping, feedstock aggregation infrastructure, district-level CBG development planning, technology adoption, process improvement, value addition of organic manure, capacity building and stakeholder awareness.
