Union Cabinet approves ₹23,371 crore GOBARdhan scheme to fuel CBG sector growth
The Union Cabinet has approved the GOBARdhan scheme with a budget of ₹23,371 crore to boost the production of compressed biogas (CBG) in India. The initiative aims to create a sustainable ecosystem for bioenergy by utilizing agricultural and organic waste.
Why it matters
This policy shift promotes renewable energy adoption and rural job creation while reducing reliance on traditional fossil fuels.
The Union cabinet on Thursday approved the National Circular Bioenergy Scheme – GOBARdhan, provisioning a ₹23,731-crore as part of efforts to catalyse the growth of compressed biogas (CBG).
The GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) scheme, to be in place until 2036, seeks to increase domestic compressed biogas production nearly ten-fold through assured offtake, administered pricing, capital subsidies, pipeline infrastructure and easier access to finance, the government said.
The government emphasised the scheme would seek to impart a “strong and predictable framework” to fuel the uptick of the CBG ecosystem.
The programme would involve the use of agricultural residue, cattle dung, sugar industry waste such as press mud, municipal organic waste and other biomass to produce compressed biogas, which can be blended into CNG used in automobiles.
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