The Centre’s newly approved GOBARdhan National Circular Bioenergy Scheme is expected to reduce India’s dependence on energy imports, save more than Rs 40,000 crore in foreign exchange and create around 1.5 lakh employment opportunities, according to an official statement issued on Friday.
The scheme is projected to increase compressed biogas (CBG) production nearly tenfold over the next decade, attract private investment, strengthen the circular bioeconomy and establish a dedicated CBG Offtake Assurance framework to ensure market access for producers.
The government said clean, domestically produced gas under the initiative will help replace around 10 million metric tonnes of fossil fuel consumption. The scheme is also expected to divert waste away from landfills, reducing over 40 million tonnes of carbon dioxide emissions and producing nearly 250 million metric tonnes of organic fertiliser.
Under the initiative, CBG producers will receive assured offtake support through a predictable market mechanism. The scheme provides an administered price of Rs 2,110 per MMBTU, capital assistance of up to Rs 2 crore per tonne per day (TPD) and an 85 per cent credit guarantee support for micro, small and medium enterprises (MSMEs).
The government highlighted that India’s demand for natural gas is increasing across transport, household, industrial and commercial sectors. Compressed biogas, being chemically equivalent to natural gas, can be integrated into the existing gas infrastructure while providing a renewable alternative.
Each CBG plant is expected to create local economic opportunities around agricultural waste, cattle dung and other organic resources by generating jobs in feedstock collection, transportation, plant operations and organic manure production.
According to the GOBARdhan Unified Registration Portal, 1,908 CBG/Bio-CNG plants have been registered across the country. Of these, 217 plants have already been commissioned, producing 0.4 million standard cubic metres per day (MMSCMD), while 339 plants are under construction.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the GOBARdhan National Circular Bioenergy Scheme on Thursday with a total financial outlay of Rs 23,731 crore. The scheme will be implemented from FY27 to FY36 and aims to establish compressed biogas as an important component of India’s future energy mix.
Procurement by City Gas Distribution entities will also support India’s CBG obligation targets, which mandate 3 per cent blending in FY27, 4 per cent in FY28 and 5 per cent from FY29 onwards in the CNG transport and domestic PNG segments.
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