Now Reading: Cabinet okays Rs 23,731 crore scheme to boost Bio-CNG from farm waste
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Cabinet okays Rs 23,731 crore scheme to boost Bio-CNG from farm waste
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 organic…
The Story in Brief
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 organic matter. The scheme will run from FY 2026-27 to FY 2035-36 and aims to increase domestic CBG output nearly ten-fold.
Under the scheme, city gas distribution entities must procure CBG to meet a mandatory obligation starting at 3% in FY 2026-27 and rising to 5% from FY 2028-29. The government will also set a stable administered CBG price of Rs 2,110 per MMBTU for at least 10 years, provide capital assistance of up to Rs 2 crore per tonne per day capacity, support pipeline connectivity, and offer a credit guarantee for MSME-based projects.
The Indian Opinion
The GOBARdhan scheme’s promise of stable pricing and assured offtake sounds impressive on paper. But the real test will be execution: can state agencies and city gas distributors actually absorb 5% CBG by 2028-29, or will the obligation remain a token? The Rs 2,110 per MMBTU price looks attractive, but producers will watch whether it keeps pace with input costs. If the pipeline connectivity and credit guarantee parts are delivered on time, this could transform rural waste into urban fuel. If not, the scheme risks becoming another well-intentioned announcement without enough gas in the tank.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
