India Boosts Domestic CBG Production with Rs 23,731 Crore GOBARdhan Scheme

The Indian government has approved the GOBARdhan scheme, also known as the National Circular Bioenergy Scheme, with an outlay of Rs 23,731 crore. This scheme aims to increase the share of Compressed Biogas (CBG) in CNG supply for vehicles.

The government plans to meet a notified CBG blending obligation across CNG and domestic PNG segments, rising from 3% in FY2026-27 to 5% by FY2028-29. This means that city gas distribution entities will have to blend more CBG into their supply chain.

CBG is chemically almost identical to natural gas, so existing CNG cars and commercial vehicles can run on it without any modifications. The government's goal is to reduce India's reliance on imported LNG by increasing domestic CBG production.