Now Reading: Government approves Rs 23,731 crore GOBARdhan scheme for Bio-CNG
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Government approves Rs 23,731 crore GOBARdhan scheme for Bio-CNG
The Story in Brief
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 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.
The Indian Opinion
The GOBARdhan scheme is a serious attempt to scale CBG, but sceptics who dismiss it as another subsidy-driven exercise miss the structured offtake obligation and 10-year pricing floor. Equally, the Indian Biogas Association's $5 billion import-reduction estimate assumes 1,500 plants running smoothly, a tall order given past delays in waste-to-energy projects. The real test will be the number of operational CBG plants by 2028 and whether city gas distributors actually buy the mandated 3% volume.
Sources (2): economictimes.indiatimes.com, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
Ashin Xavier: interesting
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