New Delhi, Aug 6 (NVI) The Union Cabinet today approved the National Circular Bioenergy Scheme, named ‘GOBARdhan’, which entails generation of energy from agricultural residue, cattle dung, press mud, municipal organic waste and other biomass resources.
With a total outlay of Rs.23,731 crore, the Scheme is to be implemented from FY 2026-27 to FY 2035-36 and establish Compressed Biogas as a major pillar of India’s future energy mix.
The Scheme aims to increase domestic Compressed Biogas (CBG) production nearly ten-fold, mobilize large-scale private investment and create a vibrant circular bioeconomy across the country,” an official spokesman said.
Administered by the Ministry of Petroleum and Natural Gas, the Scheme creates one integrated platform across the entire CBG value chain, he said.
“CBG is chemically equivalent to natural gas and can be seamlessly integrated into the existing gas ecosystem. It therefore combines the benefits of a renewable fuel with the reach and utility of India’s expanding gas infrastructure,” the spokesman said.
The Scheme supports both cluster-based and standalone pipeline infrastructure connecting CBG plants with trunk pipelines and City Gas Distribution networks.
Greater pipeline connectivity will reduce evacuation costs, improve reliability, expand market reach and enable higher utilization of domestically produced CBG.
A dedicated Credit Guarantee mechanism will strengthen lender confidence and expand the flow of institutional credit to eligible MSME-based CBG projects.
By sharing a portion of lending risk, the mechanism will improve access to affordable finance, reduce collateral requirements and support faster project development. (NVI)
