The Indian government has approved a national compressed biogas (CBG) scheme for implementation between FY2026-27 and FY2035-36, aiming to increase domestic CBG production nearly ten-fold (Government of India press release, 06/08/2026).
The INR23.7bn (USD249m) Galvanising Organic Bio-Agro Resources Dhan (GOBARdhan) programme intends to support the production of CBG from agricultural residues, cattle dung, press mud, municipal organic waste and other biomass resources through an integrated framework covering the entire value chain. Measures include assured offtake, a government-backed administered price of INR2,110/ MMBtu (USD22/MMBtu), capital assistance of up to INR20m (USD210k) per ton per day of installed capacity for eligible greenfield projects, pipeline infrastructure support and credit guarantees for MSME developers.
Under the programme, City Gas Distribution operators are to procure CBG to meet blending obligations of 3% in FY2026-27, 4% in FY2027-28 and 5% from FY2028-29 onwards in the compressed and piped natural gas domestic segments.
According to the government, GOBARdhan builds on previous initiatives that have supported the commissioning of more than 200 CBGplants nationwide. The framework is intended to reduce India’s dependence on imported natural gas, to establish CBG as a major component of India’s future energy mix and to reduce GHG emissions.