India launches Rs 23,731-crore GOBARdhan plan to turn waste into compressed biogas
The Union Cabinet approved the GOBARdhan scheme, allocating Rs 23,731 crore to boost domestic production of compressed biogas from cattle dung, crop residue and other organic waste.
On August 6 the Union Cabinet endorsed GOBARdhan, a ten-year program with a Rs 23,731 crore budget to build a commercial compressed biogas industry in India. The scheme bundles existing measures—including SATAT, biomass aggregation and pipeline assistance—into a single framework that guarantees demand from city-gas distributors, sets a minimum price for CBG, and provides up to Rs 2 crore per tonne-per-day of capital aid.
It also creates a credit-guarantee mechanism and a district-level ecosystem fund to address feedstock logistics and financing gaps that have hampered earlier efforts. By converting cattle dung, agricultural residue and municipal waste into fuel and organic manure, the plan seeks to cut imported gas dependence, lower foreign-exchange outflows and create new income streams for farmers. As of early August, 1,908 plants were registered, with 217 commissioned and 339 under construction, highlighting both the potential and the scaling challenges. Experts note that success will depend on reliable biomass supply, storage solutions and sustained market access beyond the subsidy period.
Why it matters
The scheme could turn abundant waste into domestic energy, reducing India's gas imports and creating rural income.
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