India Unveils ₹23,731 Crore Bioenergy Scheme to Reduce Gas Imports
The Indian government has approved a ₹23,731 crore scheme to promote bioenergy production and reduce natural gas imports. The GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme will run from fiscal year 2026-27 through 2035-36 and aims to convert agricultural residue, cattle dung, and municipal waste into Compressed Biogas (CBG).
The policy introduces a mandatory CBG blending obligation for City Gas Distribution (CGD) entities. Starting in FY 2026-27, these companies will be required to blend 3% of CBG into their total gas supply, increasing to 4% in FY 2027-28 and 5% from FY 2028-29 onwards.
The government has established a fixed administered price of ₹2,110 per MMBTU for CBG, which will remain in effect for 10 years. This price stability is intended to encourage private investment in new biogas plants.