The Union Cabinet has approved the GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) initiative under the National Circular Bioenergy Scheme to promote the scientific management of organic waste and generate clean energy. The scheme focuses on converting cow dung, agricultural waste, food waste and other organic waste into biogas, Bio-CNG and other useful forms of bioenergy. It aims to reduce waste and pollution while creating additional income opportunities for farmers, rural households and local communities. By promoting a circular economy in rural areas, GOBARdhan can help improve sanitation, support renewable energy production and contribute to sustainable rural development and rural prosperity.
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GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan), also known as the National Circular Bioenergy Scheme, aims to convert different types of organic waste, such as animal dung, crop residue, kitchen waste and market waste, into useful products like Compressed Biogas (CBG) and bio-slurry. The scheme promotes clean energy production while helping reduce waste and pollution.
Implementation of GOBARdhan Scheme
The Union Cabinet approved the scheme on 6 August 2026. It will be implemented from FY 2026–27 to FY 2035–36 under the Ministry of Petroleum and Natural Gas (MoPNG). The scheme brings various initiatives related to compressed biogas under one national framework.
Financial Outlay
The GOBARdhan National Circular Bioenergy Scheme has a total financial outlay of ₹23,731 crore. It aims to bring together the previously fragmented Compressed Biogas (CBG) ecosystem and create a more coordinated framework for the development of the bioenergy sector in India.
Six Key Growth Engines
The scheme is built around six major growth engines designed to support the CBG sector. These include:
- Assured offtake of CBG
- Better pricing mechanisms
- Capital support for projects
- Pipeline and infrastructure development
- Credit guarantee support
- Overall ecosystem development
These measures are expected to make CBG projects more attractive to investors and encourage wider participation in the bioenergy sector.
Objectives of GOBARdhan Scheme
The main objective of the scheme is to increase domestic CBG production nearly ten-fold, encourage private investment and develop a strong circular bioeconomy in India. The scheme aims to turn waste into a valuable resource, promote clean-energy production in rural areas, create additional economic opportunities for farmers and strengthen India’s domestic energy security.
Why is GOBARdhan Important for India?
India imports nearly half of its natural gas requirements, making the country vulnerable to changes in global energy markets and supply disruptions. Concerns around the Strait of Hormuz, through which a significant share of India’s LNG imports passes, have further highlighted the importance of increasing domestic sources of energy.
By promoting Compressed Biogas (CBG) from locally available organic waste, GOBARdhan can help diversify India’s energy sources, reduce dependence on imported fossil fuels and support the transition towards clean and sustainable energy.
GOBARdhan Unified Registration Portal
The GOBARdhan Unified Registration Portal provides a common platform for existing and proposed CBG/Bio-CNG plants to register and obtain the registration number required to access support from the Ministry of Petroleum and Natural Gas.
As of 6 August 2026, a total of 1,908 plants had been registered on the portal. This included 217 commissioned plants, producing around 0.4 MMSCMD of CBG, while 339 plants were under construction.
The GOBARdhan National Circular Bioenergy Scheme aims to transform India’s organic waste into a source of clean energy, rural income and economic value. By expanding CBG production, supporting new projects and developing a circular bioeconomy, the scheme seeks to contribute to India’s energy security, waste management and sustainable rural development.
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Six Growth Engines Under the GOBARdhan Scheme
| Component | Key Provisions | Expected Impact |
|---|---|---|
| Assured CBG Offtake | City Gas Distribution (CGD) companies will purchase CBG as per the notified obligation: 3% in FY 2026–27, 4% in FY 2027–28 and 5% from FY 2028–29 onwards for CNG-Transport and PNG-Domestic segments. | Creates a stable market for CBG, improves project viability and encourages private investment. |
| Stable CBG Pricing Framework | A government-backed price of ₹2,110 per MMBTU (₹105 per kg of CBG) will be provided with a minimum 10-year horizon, along with a market-based cost-sharing mechanism. | Provides greater price and revenue certainty, making CBG projects more attractive for investors and supporting capacity expansion. |
| Capital Assistance | Eligible greenfield CBG projects can receive financial support of up to ₹2 crore per tonne per day of installed CBG capacity. Support will also cover feedstock collection, organic-manure processing and value-addition facilities. Eligible brownfield expansion projects can also receive support. | Reduces the initial investment burden, helps projects achieve financial closure faster and encourages participation from MSMEs, cooperatives, private companies and rural entrepreneurs. |
| Pipeline Infrastructure Development | The scheme will support cluster-based and standalone pipelines to connect CBG plants with trunk pipelines and City Gas Distribution networks. | Makes it easier and cheaper to transport CBG to markets, improves supply reliability and increases the use of domestically produced CBG. |
| Credit Guarantee Support | Provides credit-guarantee coverage of up to 85% of eligible loans for MSME-based CBG projects. | Makes it easier for businesses to obtain institutional loans, reduces the need for heavy collateral and encourages MSMEs, women entrepreneurs and new developers to enter the sector. |
| CBG Ecosystem Challenge Fund | Supports feedstock mapping, waste collection infrastructure, district-level CBG planning, new technology, process improvements, organic-manure value addition, skill development and awareness programmes. | Strengthens local CBG supply chains, improves district-level planning and helps build a stronger and more efficient bioenergy ecosystem. |
What Are the Expected Outcomes of GOBARdhan Scheme?
- Boost to Private Investment: The scheme provides assured CBG offtake, stable pricing, capital assistance and better access to institutional finance. These measures can improve the financial viability of CBG projects and encourage greater private sector investment in the bioenergy industry.
- Contribution to the Economy: The expansion of the Compressed Biogas (CBG) sector is expected to contribute more than ₹75,000 crore to India’s GDP over the next 10 years, supporting the growth of the renewable energy and circular economy sectors.
- Employment and Rural Livelihoods: The growth of the CBG industry is expected to create more than 1.5 lakh jobs. It can also provide additional income opportunities for farmers, waste and feedstock collectors, cooperatives, MSMEs and rural entrepreneurs.
- Scientific Waste Management: GOBARdhan will promote the productive use of crop residue, cattle dung, municipal organic waste and other biomass by converting them into clean fuel and organic manure. This can help reduce unmanaged waste, open dumping and dependence on landfills.
- Climate and Environmental Benefits: By replacing some fossil-fuel use with clean CBG and diverting organic waste away from landfills, the scheme is expected to help reduce more than 40 million tonnes (MT) of CO₂ emissions, supporting India’s clean-energy and climate goals.
- Growth of the Organic-Manure Economy: The scheme is expected to generate around 250 million tonnes (MMT) of organic fertiliser. It will also promote the production, value addition and wider use of Fermented Organic Manure (FOM) and Liquid Fermented Organic Manure (LFOM), helping improve the use of organic waste in agriculture.
Government Initiatives for Building CBG Ecosystem
- Strong Policy Support for CBG: India has been developing its Compressed Biogas (CBG) ecosystem through several government initiatives, including the SATAT initiative, Market Development Assistance (MDA) Scheme, Biomass Aggregation Machinery (BAM) Scheme, Development of Pipeline Infrastructure (DPI) Scheme and Central Financial Assistance under the National Bioenergy Programme. Together, these initiatives support CBG production, biomass collection, transportation, infrastructure and organic-manure development.
- Support for Biomass Collection: The Biomass Aggregation Machinery (BAM) Scheme, implemented by the Ministry of Petroleum and Natural Gas, helps CBG producers purchase machinery required for collecting and handling agricultural biomass. The scheme has a total outlay of ₹564.75 crore. As of 16 March 2026, 37 proposals involving around ₹248 crore had been approved.
- Pipeline Connectivity for CBG Plants: The Development of Pipeline Infrastructure (DPI) Scheme supports the development of pipelines needed to connect CBG plants with existing gas networks. It has an allocation of ₹994.5 crore for FY 2024–25 to FY 2028–29. So far, ₹56.31 crore has been sanctioned to improve CBG transportation, evacuation and access to markets.
- Promotion of Organic Manure: The Market Development Assistance (MDA) Scheme provides ₹1,500 per metric tonne for Fermented Organic Manure (FOM), Liquid Fermented Organic Manure (LFOM) and Phosphate-Rich Organic Manure (PROM) produced by GOBARdhan and CBG plants. This support encourages the production and use of organic fertilisers and helps create an additional revenue stream for CBG projects.
- Awareness and Farmer Outreach: As of 4 March 2026, 120 CBG/biogas plants had been registered on the fertiliser portal and 44 MoUs had been signed. Between February 2025 and January 2026, around 15,690 Kisan Sangoshthis and awareness camps were organised to spread awareness among farmers and stakeholders about CBG and organic-manure products.
Conclusion
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The GOBARdhan National Circular Bioenergy Scheme aims to transform India’s organic waste into clean energy, additional rural income and economic value. By converting cattle dung, agricultural residue, kitchen waste and other organic waste into Compressed Biogas (CBG) and organic manure, the scheme promotes a more sustainable and circular use of resources.
With measures such as assured CBG offtake, stable pricing, capital assistance, pipeline connectivity and credit guarantee support, GOBARdhan is expected to make the CBG sector more financially viable and attract greater private investment. It can also create employment opportunities, support farmers and rural entrepreneurs, improve scientific waste management and reduce dependence on imported fossil fuels.
By strengthening India’s waste-to-wealth ecosystem and domestic clean-energy capacity, GOBARdhan contributes to broader goals of energy security, sustainable rural development, farmer prosperity, Atmanirbhar Bharat and the vision of Viksit Bharat. Overall, the scheme represents an important step towards building a cleaner, more resource-efficient and self-reliant bioenergy economy in India.
Frequently Asked Questions (FAQs)
1. What is the full form of GOBARdhan?
GOBARdhan stands for Galvanizing Organic Bio-Agro Resources Dhan. The initiative focuses on converting organic waste such as cattle dung, agricultural residue and other biodegradable waste into biogas, Compressed Biogas (CBG) and organic manure.
2. When was the original GOBARdhan initiative launched?
The original GOBARdhan initiative was launched on 30 April 2018 under the Swachh Bharat Mission–Grameen (SBM-G). It was introduced to promote scientific management of cattle dung and other organic waste in rural areas while generating useful resources such as biogas and organic manure.
3. What is the CBG Obligation?
The Compressed Biogas (CBG) Obligation requires specified City Gas Distribution entities to procure or blend CBG in the CNG-Transport and domestic PNG segments. The obligation is 3% in FY 2026–27, 4% in FY 2027–28 and 5% from FY 2028–29 onwards.
4. Which ministry administers the new GOBARdhan scheme?
The new GOBARdhan National Circular Bioenergy Scheme is administered by the Ministry of Petroleum and Natural Gas (MoPNG). The ministry is responsible for supporting the development and expansion of India’s CBG ecosystem.
5. What is Compressed Biogas (CBG)?
Compressed Biogas (CBG) is produced by purifying biogas generated from organic waste and upgrading it to a quality close to natural gas. It is then compressed for use as a cleaner gaseous fuel. CBG can be supplied through suitable gas infrastructure and used in applications such as transport and domestic energy, helping reduce dependence on conventional fossil fuels.
