GOBARdhan – The National Circular Bioenergy Scheme

On 6th August 2026, the Union Cabinet approved the GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) – the National Circular Bioenergy Scheme with a total outlay of ₹23,731 crore to promote compressed biogas (CBG) production, scientific waste management and a circular bioeconomy.

Key Points

Implementation Period: The scheme will be implemented from FY 2026-27 to FY 2035-36.
Target: It seeks to increase domestic compressed biogas production by nearly ten times and establish CBG as a major component of India's energy mix.
Feedstock: The scheme will utilise agricultural residue, cattle dung, press mud, municipal organic waste and other biomass resources.
Assured Market: City Gas Distribution (CGD) entities will procure CBG to meet mandatory blending obligations of 3% in FY 2026-27, 4% in FY 2027-28 and 5% from FY 2028-29 onwards.
Pricing Mechanism: The government has introduced an administered CBG price of ₹2,110 per MMBTU with a minimum tenure of 10 years to provide revenue certainty to producers.
Financial Assistance: Eligible greenfield projects will receive capital assistance of up to ₹2 crore per tonne per day (TPD) of installed CBG capacity. Brownfield expansion projects are also eligible.