Cabinet Clears GOBARdhan Scheme to Boost CBG Production

The Union Cabinet has approved the comprehensive GOBARdhan Scheme, a major initiative aimed at accelerating India's clean energy transition by significantly expanding Compressed Biogas (CBG) production over the next decade.

Addressing the Union Cabinet briefing, Union Minister Ashwini Vaishnaw said the scheme is built around six key pillars designed to strengthen the country's biogas ecosystem.
The first pillar ensures assured offtake by promoting the utilisation of Compressed Biogas through existing gas distribution networks. The second pillar provides price stability, protecting biogas producers from fluctuations in global oil and gas prices through an assured pricing mechanism.

The third pillar offers capital expenditure (CAPEX) support for setting up biogas plants, while the fourth focuses on expanding the pipeline infrastructure required to transport biogas from production facilities to consumers.

The fifth pillar provides credit guarantees for MSMEs, with a special emphasis on supporting women-led enterprises. The sixth pillar encourages innovation to drive technological advancements and improve efficiency in the biogas sector.

Vaishnaw said the scheme will integrate biogas production centres with the country's existing City Gas Distribution (CGD) networks and Piped Natural Gas (PNG) infrastructure, enabling wider adoption and seamless distribution.

The government has set a target to increase Compressed Biogas production tenfold over the next decade, encouraging greater private and MSME investment in the sector.

According to the minister, the GOBARdhan Scheme is expected to contribute approximately ₹75,000 crore to India's GDP while generating around 1.5 lakh employment opportunities, further strengthening the country's renewable energy ecosystem and supporting sustainable economic growth.