GOBARdhan Scheme

GOBARdhan Scheme Latest News

Recently, the Union Cabinet has approved the GOBARdhan Scheme. 

About GOBARdhan Scheme

• The GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) is a National Circular Bioenergy Scheme that creates a nationwide waste-to-energy ecosystem.
• It aims to increase domestic Compressed Biogas (CBG) production nearly ten-fold, mobilize large-scale private investment and create a vibrant circular bioeconomy across the country.
• Time Period: It will be implemented from FY 2026-27 to FY 2035-36 and will establish Compressed Biogas as a major pillar of India’s future energy mix.
• Nodal Ministry:  Ministry of Petroleum and Natural Gas.

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Components of GOBARdhan Scheme

• Assured CBG Offtake: Under this, a dedicated framework requires City Gas Distribution entities to meet a notified CBG blending obligation of 3% in FY27, 4% in FY28, and 5% from FY29 onwards in CNG and PNG segments.
• Stable CBG Pricing Framework: It introduces a stable administered CBG price of Rs.2,110 per Metric Million British Thermal Unit (MMBTU), supported through a government-backed pricing framework.
• Capital Assistance: Eligible greenfield CBG projects will receive capital assistance of up to Rs.2 crore per ton per day (TPD) of installed CBG capacity.
• The support extends beyond core plant machinery to critical value-chain assets for feedstock aggregation, organic manure processing and value addition. Brownfield projects expanding their production capacity will also be eligible.
• Development of Pipeline Infrastructure: The Scheme supports both cluster-based and standalone pipeline infrastructure connecting CBG plants with trunk pipelines and City Gas Distribution networks.
• Credit Guarantee Support:  A dedicated Credit Guarantee mechanism will strengthen lender confidence and expand the flow of institutional credit to eligible MSME-based CBG projects.
• CBG Ecosystem Challenge Fund: GOBARdhan establishes a dedicated CBG Ecosystem Challenge Fund to accelerate district-level implementation and strengthen local value chains across the CBG ecosystem.   

Source: PIB