The Indian Federation of Green Energy (IFGE) CBG Producer Forum has welcomed the Union Cabinet's approval of the GOBARdhan - National Unified Scheme for Compressed Biogas (CBG) with a historic outlay of Rs 23,731 crore. The landmark scheme provides a comprehensive national framework to accelerate the production and utilisation of Compressed Biogas.
The scheme aims to increase India's domestic gas production ten-fold by addressing key challenges across the CBG value chain, including assured CBG demand, administered CBG pricing, pipeline infrastructure, a dedicated Credit Guarantee Mechanism, and feedstock assessment. By integrating these interventions under a single framework, the scheme seeks to unlock India's CBG production potential and reduce dependence on imported natural gas.
India imported 25.98 million tonnes of LNG in FY 2025-26, accounting for 49.92% of the country's total gas requirement at an estimated cost of Rs 1.18 lakh crore. Increasing domestic renewable gas production through the scheme will strengthen India's energy security while reducing dependence on imported fossil fuels.
Welcoming the scheme, Y. B. Ramakrishna, Senior Vice President, IFGE; Chairman, IFGE CBG Producer Forum; and Former Chairman, Working Group on Biofuels, MoPNG said, “The approval of the GOBARdhan Scheme is a watershed moment for India's Compressed Biogas sector. By bringing together assured offtake, stable pricing, capital support, pipeline connectivity and access to finance under one integrated framework, the Government has addressed the key structural challenges faced by the industry. This landmark initiative will significantly improve project bankability, accelerate investments and enable India to harness its vast biomass resources for clean energy production, rural prosperity and energy security."
Ashish Kumar, Vice President, IFGE; Co-Chairman, IFGE CBG Producer Forum; and Managing Director, VERBIO India said, “The launch of the GOBARdhan Scheme reflects the Government's commitment to addressing key barriers to sector growth and providing the long-term policy certainty required for investment. The assured market, transparent pricing mechanism and comprehensive support across the CBG value chain will encourage faster project implementation and technology deployment. As an industry, we are confident that this integrated approach will attract substantial private investment, strengthen domestic manufacturing and position India among the world's leading producers of renewable gaseous fuels.”
Sanjay Ganjoo, Director General, Indian Federation of Green Energy (IFGE) said, “The Rs 23,731 crore GOBARdhan package has the potential to do for India's biogas sector what the PLI Scheme did for solar manufacturing - transform policy intent into bankable projects. India's challenge was never feedstock availability, but assured offtake, project viability and evacuation infrastructure. By addressing these critical gaps through integrated support for production, pricing and pipeline connectivity, the Scheme will improve investor confidence, accelerate private investment and strengthen project bankability. It will also create sustainable rural livelihoods, promote scientific biomass utilization and enhance India's energy security, making it a defining milestone for the CBG sector.”