The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the GOBARdhan scheme on August 6, 2026, with a budgetary outlay of Rs 23,731 crore to expand India's compressed biogas capacity and cut dependence on imported natural gas.
GOBARdhan, short for Galvanizing Organic Bio-Agro Resources Dhan, will run from FY2026-27 to FY2035-36 and is built around six pillars: assured offtake, price stability, capital expenditure support, pipeline infrastructure, credit guarantees and a challenge fund for innovation.
City gas distribution companies will be required to blend compressed biogas into the CNG and piped natural gas they supply, with mandatory targets rising from 3% in 2026-27 to 4% the following year and 5% from 2028-29 onward.
The scheme also fixes a stable administered price of Rs 2,110 per MMBTU for compressed biogas, aimed at giving producers pricing certainty as they convert agricultural residue, cattle dung, press mud and municipal organic waste into fuel and organic manure.