India launches GOBARdhan scheme for compressed biogas sector

India has launched the GOBARdhan scheme and a unified portal, along with a handbook, on October 1, 2026. This initiative aims to consolidate the compressed biogas (CBG) sector by bringing together producers, farmers, state governments, city gas distribution entities, and financial institutions under a single framework.

The scheme seeks to reduce India’s significant natural gas import dependence by utilizing agricultural residues, animal dung, and municipal and industrial organic waste. The GOBARdhan scheme is designed to build an ecosystem that empowers farmers to become energy producers. Earlier, the CBG policy was fragmented, with different agencies handling land, feedstock, approvals, finance, technology, purification, and off-take.

The new unified portal serves as a single interface for plant registration and support access. Producers must install SCADA and automatic shut-off systems for data reporting. Capital assistance is linked to plant performance, with the final 50% released only when a plant operates at 75% capacity. The administered CBG price is set at Rs 2,110 per MMBtu until March 31, 2036, with digital facilitation of firm off-take agreements.