National Circular Bioenergy Scheme – GOBARdhan

The Union Cabinet has approved the National Circular Bioenergy Scheme – GOBARdhan with an outlay of ₹23,371 crore.

About the Scheme

• The scheme will remain in force till FY 2035-36.
• It seeks to raise local CBG production by almost tenfold through assured offtake, administered pricing, capital subsidies, better pipeline infrastructure and easier access to finance.
• The government aims to create a strong and predictable policy framework for the growth of the CBG ecosystem.

Feedstock for CBG Production

• The programme will use agricultural residue, cattle dung, sugar-industry waste such as press mud, municipal organic waste and other biomass.
• The resulting compressed biogas can be blended with CNG used in automobiles and PNG supplied through pipelines.

Key Objectives

• Increase domestic production of compressed biogas.
• Reduce dependence on conventional fossil fuels.
• Improve utilisation of agricultural and organic waste.
• Strengthen energy security and circular bioeconomy.
• Attract greater private investment into the CBG sector.

Industry Perspective

• Industry representatives highlighted three key requirements for the sector: remunerative pricing, assured offtake and capital support.
• The scheme is expected to help scale the sector from around 300 operational plants toward 5,000 plants and generate substantial rural employment.

Significance

• Promotes waste-to-energy conversion and better management of biodegradable waste.
• Supports rural livelihoods and creates employment opportunities.
• Encourages cleaner fuel production and strengthens India’s bioenergy ecosystem.
• Provides a more predictable investment environment for the CBG industry.