India's GOBARdhan Scheme Guarantees Up to 100% CBG Offtake for Producers

The Indian government has rolled out its GOBARdhan scheme for compressed biogas (CBG), offering producers up to 100% assured offtake and a minimum of 10 years' administered price protection. The Petroleum and Natural Gas Ministry has laid down detailed mechanisms for the scheme, which aims to make waste-to-energy projects more commercially viable.

Under GOBARdhan, eligible CBG producers can opt for assured offtake of up to 100% of CBG available for sale, subject to technical and operational feasibility. The gas will be mapped either to City Gas Distribution (CGD) entities and geographical areas or to identified CBG clusters for aggregation and injection into trunk pipelines.

The government has also introduced an administered CBG price of Rs 2,110 per million British thermal unit (MMBtu), equivalent to about Rs 98 per kg at 95% methane content, excluding taxes and compression charges. The price will remain in place for a minimum of 10 years, until March 31, 2036.