Now Reading: Centre rolls out Rs 23,731-crore GOBARdhan rules with CBG offtake
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Centre rolls out Rs 23,731-crore GOBARdhan rules with CBG offtake
The government has operationalised its Rs 23,731-crore GOBARdhan scheme for compressed biogas, offering producers assured offtake of up to 100 per cent of output, an administered price of Rs 2,110 per million…
The government has operationalised its Rs 23,731-crore GOBARdhan scheme for compressed biogas, offering producers assured offtake of up to 100 per cent of output, an administered price of Rs 2,110 per million British thermal unit for at least 10 years, and capital assistance of up to Rs 30 crore per project. The Petroleum and Natural Gas Ministry issued the operational guidelines on September 15, with the scheme to run from 2026-27 to 2035-36.
The scheme aims to nearly ten-fold domestic CBG production by turning organic waste into fuel that will be co-mingled with natural gas. City gas distributors must procure and sell CBG under a phased obligation: 3 per cent in FY2026-27, 4 per cent in FY2027-28 and 5 per cent from FY2028-29 onwards. GAIL has been designated as the synchro operator for procurement and pooling of CBG.
Indian Opinion Analysis
The GOBARdhan rules tackle the classic chicken-and-egg problem that has stalled India's waste-to-energy sector: plants struggled to get financed without guaranteed buyers, and buyers hesitated without reliable supply. By combining a fixed price floor, capital grants, and mandatory offtake by city gas distributors, the government is effectively underwriting the market risk for 10 years. The phased obligation on CGD entities ensures demand builds gradually, while the capital assistance linked to milestones prevents idle plants. The real test will be how quickly state-level clearances and feedstock supply chains come together, as project viability depends on steady access to cattle dung and agricultural residue. The scheme's first milestone is the 3 per cent CGD obligation starting April 2026.
Source: economictimes.indiatimes.com
This brief was synthesised by AI from the source linked above.
