# Government approves Rs 23,731 crore GOBARdhan scheme for Bio-CNG

2026-08-09T11:43:47+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

The Union Cabinet has approved GOBARdhan, the National Circular Bioenergy Scheme, with a total outlay of Rs 23,731 crore to boost Compressed Biogas (CBG) production from agricultural waste, cattle dung and other organic matter. The scheme will run from FY 2026-27 to FY 2035-36 and aims to raise India's CBG output nearly tenfold. It includes a mandatory CBG blending obligation of 3% for CNG and PNG segments from next fiscal, a fixed administered price of Rs 2,110 per MMBTU for 10 years, and capital assistance of up to Rs 2 crore per tonne per day of installed capacity. The Indian Biogas Association estimates the scheme could reduce India's natural gas import bill by $5 billion and fertiliser imports by $1 billion annually, though these figures assume 1,500 fully functional CBG plants.

## Coverage

- economictimes.indiatimes.com <https://economictimes.indiatimes.com/news/new-updates/after-ethanol-in-petrol-its-now-bio-cngs-turn-govts-rs-23731-crore-push-could-change-what-powers-your-cng-car-in-the-years-ahead/articleshow/133065262.cms>
- thehindubusinessline.com <https://www.thehindubusinessline.com/economy/gobardhan-scheme-can-help-reduce-gas-imports-by-5-billion-says-iba/article71324401.ece>

Tags: Bio-CNG, compressed biogas, farm waste, GOBARdhan, natural gas, renewable energy
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