Cabinet clears Rs 23731 crore GOBARdhan bioenergy plan
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Cabinet clears Rs 23731 crore GOBARdhan bioenergy plan

BioEnergy Times··7 Aug

The Union Cabinet on August 6 approved the GOBARdhan National Circular Bioenergy Scheme with an outlay of Rs 23731 crore from FY 2026-27 to 2035-36. Compressed biogas blending is set to rise from 3 percent toward 5 percent. An administered price of Rs 2110 per MMBTU and capital aid up to Rs 2 crore per tonne per day were announced.

Prism

What It Means For You

  • CNG and PNG users can track CBG blending rising from 3 percent toward 5 percent over coming years.
  • Farmers and waste suppliers may see new offtake routes as plants seek cattle dung and biomass.
  • Investors in greenfield CBG can note capital aid up to Rs 2 crore per tonne per day of capacity.

What's Happening

  • The Union Cabinet on August 6 approved the GOBARdhan National Circular Bioenergy Scheme with Rs 23731 crore.
  • The scheme runs from FY 2026-27 to FY 2035-36 to scale compressed biogas production.
  • CBG blending obligations move from 3 percent toward 5 percent, with an administered price of Rs 2110 per MMBTU.

Why CBG Needs Price Floor And Blending Mandates

  • India has about 219 CBG plants against a much larger SATAT-era ambition near 5000 units.
  • Assured City Gas Distribution offtake and a 10-year price framework aim to unlock private capital.
  • Capital support, pipeline links and credit guarantees target the viability gap that slowed earlier plants.
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