Government issues detailed GOBARdhan rules, guarantees full CBG purchase and sets long-term price
The government released operational guidelines for the ₹23,731 crore GOBARdhan program, promising up to 100 % offtake for compressed biogas and establishing a fixed price for the next ten years.
The Union Cabinet has formalised the GOBARdhan initiative, a ₹23,731 crore effort to convert agricultural residues, cattle dung, press mud and other urban waste into clean fuel and organic manure. Under the guidelines, CBG producers are assured of selling up to the entire output, subject to technical feasibility, and city gas distribution companies are required to source a minimum share of CBG—3 % in FY27, rising to 5 % by FY29.
A ten-year administered price of ₹2,110 per MBTU (about ₹98 per kg at 95 % methane) is set, with a capped affordability subsidy of ₹10 per kg for the Synchro Operator. New CBG facilities can claim ₹1.25 crore per tonne-per-day of capacity, capped at ₹30 crore per project, while upgrades qualify for ₹0.60 crore per tonne-per-day, capped at ₹5 crore. The rules also mandate real-time monitoring, online gas-quality checks and automatic shut-off systems for participating plants.
Why it matters
The policy aims to boost renewable fuel production, reduce waste and create new revenue streams for farmers and waste managers.
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