India's cabinet has approved a Rs 23,731 crore (USD 2.5bn) national bioenergy scheme to scale compressed biogas (CBG) production over the next decade, aiming to establish renewable gas as a major pillar of the country's energy mix.
The GOBARdhan (National Circular Bioenergy Scheme) will be implemented from FY2026-27 to FY2035-36, targeting a near tenfold increase in domestic CBG production from current levels. The scheme consolidates earlier initiatives including the SATAT programme, with over 200 CBG plants already operational.
The framework provides assured offtake through City Gas Distribution entities, which face mandatory CBG blending obligations: 3 per cent in FY2026-27, 4 per cent in FY2027-28, and 5 per cent from FY2028-29 onwards across transport (CNG) and domestic (PNG) segments. Greenfield CBG projects will receive capital assistance of up to Rs 2 crore per tonne per day of installed capacity, with dedicated credit guarantees for MSME-based projects.
Feedstock will draw from agricultural residues, cattle dung, sewage sludge and municipal solid waste. The scheme establishes pipeline infrastructure connections and a CBG Ecosystem Challenge Fund to strengthen district-level implementation and feedstock value chains.
India currently meets roughly half its natural gas demand through LNG imports and aims to raise gas use in its energy mix to 15 per cent by 2030 from the current 6 per cent. Government projections indicate 480 CBG plants operational by 2028-29, including 195 developed by state oil and gas companies.
India invests in USD2.5bn compressed biogas expansion
