Union Minister of Petroleum and Natural Gas Shri Hardeep Singh Puri launched the Gobardhan Scheme to accelerate the development of India's compressed biogas sector.

Assured procurement, stable pricing, capital support, pipeline connectivity, credit support and ecosystem development brought under an integrated framework under the Integrated Central Sector Scheme.

Release of Gobardhan Booklet and launch of Integrated Gobardhan Portal to help in streamlined implementation of the scheme.

Entry Date: 01 OCT 2026 8:27PM by PIB Delhi

Union Minister of Petroleum and Natural Gas Shri Hardeep Singh Puri today launched the Central Pool Scheme 'Gobardhan' for development of Compressed Bio Gas (CBG) sector.

The scheme, approved by the Union Cabinet on August 6, 2026, with an outlay of ₹23,731 crore, provides a 10-year framework, from FY 2026-27 to FY 2035-36, to accelerate the development of CBG in India. The scheme aims to increase domestic CBG production by nearly 10 times (to approximately 5 mmscmd), with a long-term framework that provides greater certainty to investors and lenders.  

The launch event was attended by various stakeholders from the CBG ecosystem, including representatives from Central Ministries, State Governments, CBG developers, Oil & Gas Companies, City Gas Distribution Utilities, Financial Institutions, Cooperatives, Technology Providers and other stakeholders.

The occasion also saw the release of the Gobardhan Booklet, a comprehensive reference guide to assist stakeholders, project developers, state governments, and financial institutions in understanding the scheme and availing its CBG-related provisions. The Integrated Gobardhan Portal, a centralized digital platform, was also launched. It has been developed to streamline the application process, eliminate the need to apply through multiple channels, and enhance transparency during application processing and scheme implementation.

Speaking on the occasion, Shri Hardeep Singh Puri said that India's growing energy needs must be met through the combined objectives of availability, affordability and sustainability, which requires emphasis on optimal development of the energy resources available in the country.

He said that CBG is of particular importance to India because it can convert crop residues, animal dung, and other organic resources into clean domestic energy, while also producing organic fertilizer and creating new economic opportunities in rural areas. Farmers, cooperatives, cow shelters, and local entrepreneurs can participate in various activities such as feedstock collection, aggregation, transportation, and processing, further strengthening the cyclical relationship between agriculture and energy.

He called upon the industry , financial institutions, states, cooperatives, technology providers and other stakeholders to translate this framework into operational plants and sustainable CBG production, thereby enhancing India's energy security and rural prosperity and furthering the Prime Minister's vision of 'Waste to Wealth' and 'Annadata to Urjadata'.

Addressing the gathering, Dr. Neeraj Mittal, Secretary, Ministry of Petroleum and Natural Gas, said that India currently meets almost half of its natural gas requirement through imports and CBG provides an opportunity to convert domestic organic waste into a domestic gas resource.

He said that sector experience has also revealed constraints related to volatile revenues, fragmented support, lack of long-term policy clarity, assured availability of feedstock, procurement of organic fertilizers, and access to finance. Gobardhan addresses these issues by making the Ministry of Petroleum and Natural Gas the sole nodal ministry, providing predictable pricing, assured gas procurement, enhanced capital support, integrated processes, and more extensive use of digital monitoring.

Secretary Dr. Neeraj Mittal also highlighted the important role of state governments in translating the national framework into projects on the ground. This includes enabling state-level CBG policies, assessing feedstock, providing suitable land banks, providing quick approvals, and providing infrastructure support.

An integrated framework for the CBG sector

A presentation on Gobardhan outlined the scheme's framework and the shift from multiple, siloed initiatives to an integrated framework for the sector. Gobardhan comprises six key initiatives: CBG procurement assurance, CBG pricing framework, capital support for CBG projects, pipeline infrastructure development, credit guarantee support, and the CBG Ecosystem Challenge Fund.

Under the procurement framework, CBG plants will be linked to identified City Gas Distribution (CGD) geographical areas or CBG clusters, ensuring a reliable channel to reach the market. Under the CBG Obligation (CBO), City Gas Distribution (CGD) entities will be responsible for procuring CBG. This procurement requirement for CNG (transport) and PNG (domestic) sectors has been fixed at 3% in FY 2026-27, 4% in FY 2027-28 and 5% from FY 2028-29 onwards.

Under this scheme, an administered CBDG price of ₹2,110 per mmBtu has been set, providing greater clarity to producers regarding revenue. Eligible greenfield projects can receive capital assistance of up to ₹2 crore per TPD of CBDG capacity installed. This includes assistance for plant machinery, feedstock aggregation, and equipment related to FOM/LFOM processing and compost value addition.

To address the bottlenecks related to gas evacuation, assistance is available up to 80 per cent of the eligible capital expenditure for pipelines connecting CBG clusters to the main pipeline network and up to 50 per cent for connecting independent plants to the CGD network.

Under a dedicated credit guarantee mechanism for eligible MSME-led CBG projects, up to 85 percent of the outstanding amount will be guaranteed in the event of default, subject to prescribed project limits. The maximum guarantee limit is ₹20 crore per project for general MSME projects and ₹25 crore per project for women-led MSME projects. This will better support women entrepreneurs in the CBG sector.

The CBG Ecosystem Challenge Fund will support technology development, capacity building, feedstock assessment and aggregation, ecosystem development at the district level and value addition of organic manure.

With over 217 plants and an installed capacity of over 1,700 TPD (tonnes per day) by August 2026, India's CBG ecosystem has already laid a strong foundation for further growth. The plan aims to increase domestic CBG production by approximately tenfold over its ten-year implementation period.

The scheme is expected to deliver significant economic and environmental benefits, including foreign exchange savings of over ₹40,000 crore, a contribution of over ₹75,000 crore to the Gross Domestic Product (GDP), and the creation of over 150,000 jobs. It is also expected to replace 10 million tonnes of fossil fuels with clean gas, reduce carbon dioxide (CO₂ ) emissions by over 40 million tonnes , and produce 250 million tonnes of organic fertilizer .