🗞️ Why in News Petroleum and Natural Gas Minister Hardeep Singh Puri on 1 October 2026 launched GOBARdhan, a Central Sector Scheme for the Compressed Biogas (CBG) sector with an outlay of Rs 23,731 crore over FY 2026-27 to FY 2035-36. The scheme, approved by the Union Cabinet in August 2026, aims to raise domestic CBG output nearly tenfold, to about 5 MMSCMD. A GOBARdhan Handbook and a Unified GOBARdhan Portal were released with it.
The Scheme at a Glance
| Feature | Detail |
|---|---|
| Type | Central Sector Scheme, fully funded by the Centre |
| Nodal ministry | Ministry of Petroleum and Natural Gas (MoPNG), as the single nodal ministry for the sector |
| Outlay and period | Rs 23,731 crore; ten years, FY 2026-27 to FY 2035-36 |
| Cabinet approval | 6 August 2026 |
| Target | CBG production up nearly ten times, to about 5 MMSCMD (million standard cubic metres a day) |
| Starting point | 217+ plants commissioned with over 1,700 TPD (tonnes per day) of capacity, as of August 2026 |
| Launched with | GOBARdhan Handbook; Unified GOBARdhan Portal for single-window applications |
Six Interventions
| Intervention | How it works |
|---|---|
| 1. CBG offtake assurance | Plants are mapped to City Gas Distribution (CGD) geographical areas or CBG clusters. Under the CBG Obligation (CBO), CGD entities must buy CBG: 3% in FY 2026-27, 4% in FY 2027-28 and 5% from FY 2028-29, for CNG (transport) and PNG (domestic) |
| 2. Pricing framework | An administered CBG price of Rs 2,110 per MMBtu for revenue visibility |
| 3. Capital assistance | Up to Rs 2 crore per TPD of installed capacity for eligible greenfield plants, including feedstock aggregation and manure processing equipment |
| 4. Pipeline infrastructure | Up to 80% of eligible cost for pipelines from CBG clusters to trunk networks; up to 50% for standalone plants connecting to CGD networks |
| 5. Credit guarantee | Covers up to 85% of the amount in default for eligible MSME CBG projects; cap Rs 20 crore per project, Rs 25 crore for women-led MSMEs |
| 6. CBG Ecosystem Challenge Fund | Technology, capacity building, feedstock assessment, district-level ecosystems and value addition in organic manure |
On price. For background, a clarification issued on 29 August 2026 explained that the earlier price was linked to 85 per cent of the CNG retail price, about Rs 1,478 per MMBtu. The administered price of Rs 2,110, less an affordability support of Rs 10 per kg (about Rs 215 per MMBtu), gives an effective price of about Rs 1,895 per MMBtu.
Expected Outcomes (Government Estimates)
| Outcome | Estimate |
|---|---|
| Foreign exchange saved | Over Rs 40,000 crore |
| Addition to GDP | Over Rs 75,000 crore |
| Jobs | Over 1.5 lakh |
| Fossil fuel replaced | 10 million tonnes |
| CO2 avoided | Over 40 million tonnes |
| Organic manure | 250 million tonnes |
How the Policy Got Here
| Year | Step |
|---|---|
| 2018 | GOBAR-Dhan (Galvanizing Organic Bio-Agro Resources Dhan) launched under Swachh Bharat Mission (Grameen); SATAT (Sustainable Alternative Towards Affordable Transportation) launched by MoPNG to set up CBG plants and buy their gas |
| 2023 | The Union Budget announced 500 new “waste to wealth” plants under GOBARdhan; a CBG Blending Obligation was announced, voluntary at first and mandatory from FY 2025-26 |
| 2026 | Fragmented support folded into a single ten-year Central Sector Scheme under MoPNG |
What CBG is. Biogas from the anaerobic digestion of cattle dung, crop residue, press mud or municipal waste is cleaned to remove carbon dioxide and hydrogen sulphide until it is mostly methane, then compressed. It is chemically similar to CNG and can run vehicles or enter gas pipelines. The leftover slurry becomes Fermented Organic Manure (FOM) or its liquid form, LFOM.
Analysis
1. It fixes the right failures. The MoPNG Secretary listed the sector’s problems: volatile revenue, fragmented support, short policy visibility, uncertain feedstock, weak manure offtake and poor access to finance. Assured offtake, a fixed price, capital support and credit guarantees answer each of these.
2. Energy security. India imports nearly half its natural gas, MoPNG says. Gas made from domestic waste cuts the import bill and the exposure to global prices.
3. Climate and air. Crop residue used for CBG is residue not burnt in the field, and dung digested in a closed plant releases less methane than dung left in the open. CBG can therefore help both the stubble-burning problem and methane emissions.
4. Execution is the test. Earlier targets ran far ahead of plants on the ground: about 217 plants were working by August 2026. Feedstock supply chains, land, State approvals and a market for organic manure decide whether the tenfold target is met.
5. Rural income. Farmers, cooperatives and gaushalas can earn from collection, aggregation and transport of feedstock. The “Annadata to Urjadata” idea depends on fair, prompt payments to them.
UPSC Relevance
GS Paper 3. Infrastructure: energy; conservation and environmental pollution (stubble burning, methane); government schemes for agriculture and rural livelihoods; investment models.
A question worth preparing. “Compressed biogas can serve energy security, clean air and farm incomes at once.” Examine the design of the GOBARdhan scheme and the obstacles to scaling CBG in India. (250 words)
The Mains framing. Define CBG and its feedstocks, give the import dependence on gas, and set out the scheme’s six interventions with figures. Discuss feedstock logistics, manure markets, pricing and State facilitation. Conclude with cluster models, crop-residue supply chains and linking CBG to the stubble-burning response.
📌 Facts Corner, Knowledgepedia
Prelims, statement-ready facts:
- GOBARdhan: Central Sector Scheme for Compressed Biogas; outlay Rs 23,731 crore; FY 2026-27 to 2035-36; nodal MoPNG.
- Cabinet approval 6 August 2026; launched 1 October 2026 with a Handbook and the Unified GOBARdhan Portal.
- Target: CBG output about tenfold, to about 5 MMSCMD; 217+ plants and 1,700+ TPD as of August 2026.
- CBG Obligation on CGD entities: 3% (FY27), 4% (FY28), 5% from FY29, for CNG (transport) and PNG (domestic).
- Administered price Rs 2,110 per MMBtu; capital aid up to Rs 2 crore per TPD for greenfield plants.
- Credit guarantee up to 85% of default; cap Rs 20 crore, or Rs 25 crore for women-led MSMEs.
Prelims, the traps:
- The new GOBARdhan is a Central Sector scheme (100% central), not a Centrally Sponsored one.
- The CBO is placed on City Gas Distribution entities, not on oil marketing companies’ petrol pumps.
- SATAT (2018) is a MoPNG initiative; the original GOBAR-Dhan (2018) came under Swachh Bharat Mission (Grameen).
Mains, arguments and keywords:
- Waste to wealth; circular economy; assured offtake; price certainty; feedstock aggregation; FOM markets; methane abatement; stubble burning.
Interview, be ready for:
- “Why have CBG targets been missed before?” Revenue uncertainty, feedstock logistics and weak manure demand; the new design targets each.
Sources: PIB, Ministry of Petroleum and Natural Gas (1 October 2026), MoPNG, SATAT
Source: GOBARdhan Scheme: Rs 23,731 Crore Plan for Compressed Biogas — Ujiyari.com | Free UPSC & State PCS Current Affairs
