Union Cabinet Approves ₹23,731 Crore GOBARdhan Circular Bioenergy Scheme
Environment & Energy · Friday, 7 August 2026
The Union Cabinet approved the GOBARdhan — National Circular Bioenergy Scheme with a 10-year financial outlay of ₹23,731 crore. Nodalized under MoPNG, it unifies the Compressed Biogas (CBG) value chain and mandates CGD blending targets to accelerate India's bioeconomy.
Quick highlights
- Total outlay: ₹23,731 crore across a 10-year implementation period (FY 2026–27 to FY 2035–36).
- Nodal Ministry: Ministry of Petroleum and Natural Gas (MoPNG).
- Mandatory CBG blending in CGD networks: 3% in FY27, 4% in FY28, and 5% from FY29 onwards.
- Administered CBG price set at ₹2,110 per MMBTU for 10 years to ensure revenue stability.
- Capital assistance up to ₹2 crore per TPD of installed CBG capacity.
Context
The Union Cabinet approved GOBARdhan as a National Circular Bioenergy Scheme to consolidate earlier bioenergy schemes like SATAT, MDA, and the Biomass Aggregation Machinery initiative.
Key Facts
Converts agricultural waste, cattle dung, municipal solid waste, and press mud into Compressed Biogas (CBG) and Fermented Organic Manure (FOM). Provides credit guarantees for MSMEs and establishes a CBG Ecosystem Challenge Fund.
Significance
Reduces LNG import dependencies, curbs stubble burning, fosters rural circular bioeconomy, and contributes to India's net-zero targets.
Challenges / Way Forward
Ensuring year-round biomass feedstock supply chains and integrating rural production units with urban City Gas Distribution pipelines.
Exam Angle
High relevance for GS Paper III (Energy, Renewable Resources, Environmental Conservation, Agriculture Waste Management).
Remember this
- Outlay: ₹23,731 crore over 10 years (FY27 to FY36).
- Nodal Ministry: Ministry of Petroleum and Natural Gas (MoPNG).
- Mandatory CBG Blending: 3% (FY27), 4% (FY28), 5% (FY29+).
- Administered CBG Price: ₹2,110 per MMBTU.
- Main Byproduct: Fermented Organic Manure (FOM) for organic farming.
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