India Targets 5% Bio-CNG Blending in CNG Fuel Supply
The Indian government has approved a national scheme to increase bio-compressed natural gas (Bio-CNG) blending in the country's CNG fuel supply. The GOBARdhan National Circular Bioenergy Scheme will have a total outlay of Rs 23,731 crore and aims to blend 5% Bio-CNG by FY2028-29.
The blending level will start at 3% in FY2026-27, increase to 4% in FY2027-28, and reach 5% from FY2028-29 onwards. The government plans to create an assured offtake mechanism for Bio-CNG, which will give producers a more reliable market for their fuel.
The scheme includes financial and infrastructure support for eligible greenfield CBG projects, with capital assistance of up to Rs 2 crore per tonne per day (TPD) of installed production capacity. The government has also introduced an administered CBG price of Rs 2,110 per MMBTU, giving producers better visibility over future revenue.