GOBARdhan scheme targets faster CBG growth with subsidies and assured prices

Assured prices, subsidies to spur CBG output

The government has approved the Rs 23,731-crore GOBARdhan scheme to expand compressed biogas production, The Hindu BusinessLine reports. It will support assured offtake, stable pricing, capital assistance, pipeline infrastructure, credit guarantees and…

The Story in Brief

The government has approved the Rs 23,731-crore GOBARdhan scheme to expand compressed biogas production, The Hindu BusinessLine reports. It will support assured offtake, stable pricing, capital assistance, pipeline infrastructure, credit guarantees and feedstock aggregation. India achieved 1.05% CBG blending in FY26 against the 1% target, with oil and gas firms procuring 96,500 tonnes. The blending requirement rises to 3% in FY27, 4% in FY28 and 5% from FY29.

GOBARdhan scheme targets faster CBG growth with subsidies and assured prices

The Economic Times Energy reports that the scheme is expected to offer higher procurement prices and capital subsidies, potentially supporting 600 to 700 plants over the next year. Its report says 219 SATAT plants are operational, while BusinessLine cites 217 commissioned plants across schemes as of July 31, 2026. CBG plants convert dung, farm waste and other organic material into fuel and manure.

The Indian Opinion

Claims that India’s CBG push has already solved its energy and waste problems are premature. The 1.05% blending result is encouraging, but the next jump to 3% will test plant reliability, feedstock collection and pipeline access. The opposite claim, that subsidies alone will create thousands of viable units, is just as weak. The useful test is whether procurement rises beyond 96,500 tonnes while plants operate consistently, not merely receive approvals.


Sources (2): energy.economictimes.indiatimes.com, thehindubusinessline.com

This story was synthesised by AI from the 2 sources linked above.

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