GOBARdhan Scheme

Why in News?

Recently, Union Cabinet approved GOBARdhan, India’s National Circular Bioenergy Scheme.

• GOBARdhan Scheme – National Unified Scheme for Compressed Biogas.
• Aim – To transform agricultural residue, cattle dung, press mud, municipal organic waste, and biomass into clean fuel, organic manure, and rural income.

Six Growth Engines under GOBARdhan

• Assured CBG Offtake – Dedicated framework; blending obligation trajectory:
  • 3% in FY 2026-27
  • 4% in FY 2027-28 and
  • 5% from FY 2028-29 onwards in the CNG (Transport) and PNG (Domestic) segments.
• Stable Pricing – Administered price of Rs. 2,110 Metric Million British Thermal Unit (MMBTU) supported through a government-backed pricing framework. with 10‑year horizon for durable revenue certainty.
• Capital Assistance – Up to Rs.2 crore per ton per day (TPD) capacity for greenfield projects; support for brownfield expansions.
• Pipeline Infrastructure – Cluster‑based and standalone pipelines connecting CBG plants with trunk pipelines and City Gas Distribution networks.
• Credit Guarantee – Mechanism to expand institutional credit, reduce collateral, support MSMEs, women entrepreneurs.
• CBG Ecosystem Challenge Fund – District‑level support for feedstock mapping, infrastructure, technology adoption, manure value addition, and awareness.

Impact

• Production – Ten‑fold growth in domestic CBG.
• Energy Security – Reduced dependence on imported fossil fuels.
• Investment – Large‑scale private participation with stable returns.
• Rural Livelihoods – New income opportunities for farmers, cooperatives, entrepreneurs.
• Waste Management – Productive use of residue, dung, municipal organic waste.
• Environment – Lower greenhouse gas emissions.
• Organic Manure Economy – Greater production and utilization of FOM (Fermented Organic Manure) and LFOM (Liquid Fermented Organic Manure).
• Implementation – Faster rollout through one national framework and digital governance.

Reference

PM India | GOBARdhan