GOBARdhan compressed biogas scheme launched: ₹23,731 crore outlay, capital assistance up to ₹2 crore per TPD and credit guarantee for MSME plants
GOBARdhan, the unified scheme for compressed biogas (CBG), was approved by the Union Cabinet on 6 August 2026 with an outlay of ₹23,731 crore for FY 2026-27 to FY 2035-36 and launched on 1 October 2026 with a Handbook and a Unified GOBARdhan Portal. It offers an administered CBG price of ₹2,110 per MMBtu, capital assistance and a credit guarantee for MSME projects.
Key facts
- In force
- Scheme period FY 2026-27 to FY 2035-36; launched 1 October 2026
- Who it affects
- Compressed biogas plant developers, MSMEs and women-led MSMEs, cooperatives, gaushalas, rural entrepreneurs, City Gas Distribution entities, banks and financial institutions
- What it is
- New facility
- Section
- Startup & MSME
- Published
- 1 October 2026
In 30 seconds
- Outlay ₹23,731 crore; the scheme runs from FY 2026-27 to FY 2035-36 and is administered by the Ministry of Petroleum and Natural Gas.
- Launched on 1 October 2026 with the GOBARdhan Handbook and the Unified GOBARdhan Portal for applications.
- Administered CBG price of ₹2,110 per MMBtu, with a minimum ten-year horizon.
- Capital assistance of up to ₹2 crore per TPD of installed CBG capacity for eligible greenfield projects; brownfield expansions are also eligible.
- Credit guarantee for eligible MSME-based CBG projects: up to 85% of the outstanding amount at default; cap ₹20 crore per project, ₹25 crore for women-led MSME projects.
- City Gas Distribution entities must procure CBG: 3% in FY 2026-27, 4% in FY 2027-28 and 5% from FY 2028-29, in the CNG (Transport) and PNG (Domestic) segments.
हिंदी में सार
Compressed Biogas (CBG) के लिए एकीकृत योजना GOBARdhan को कैबिनेट ने 6 अगस्त 2026 को ₹23,731 करोड़ के परिव्यय के साथ मंज़ूरी दी और 1 अक्टूबर 2026 को इसे Handbook और Unified GOBARdhan Portal के साथ लॉन्च किया गया। योजना FY 2026-27 से FY 2035-36 तक चलेगी। इसमें CBG का तय मूल्य ₹2,110 प्रति MMBtu, नए प्लांट के लिए ₹2 करोड़ प्रति TPD तक पूँजी सहायता और MSME परियोजनाओं के लिए 85% तक क्रेडिट गारंटी (सीमा ₹20 करोड़, महिला-नेतृत्व वाली MSME के लिए ₹25 करोड़) शामिल है।
What has happened
The Union Cabinet approved GOBARdhan on 6 August 2026 with a total outlay of ₹23,731 crore, to be implemented from FY 2026-27 to FY 2035-36. On 1 October 2026 the Union Minister of Petroleum and Natural Gas launched it as a Central Sector Scheme for development of the Compressed Biogas (CBG) sector, along with the GOBARdhan Handbook and the Unified GOBARdhan Portal, which the Ministry describes as a centralised digital platform to streamline applications.
The Ministry of Petroleum and Natural Gas is the single nodal Ministry. According to the releases, the scheme brings earlier separate interventions for the sector into one framework and aims to raise domestic CBG production nearly ten-fold, to around 5 MMSCMD. The Ministry says 217+ plants had been commissioned as of August 2026, with installed capacity of more than 1,700 TPD.
The six components
| Component | What the releases say |
|---|---|
| CBG offtake assurance | CBG plants will be mapped to identified City Gas Distribution (CGD) geographical areas or CBG clusters. Under the CBG Obligation, CGD entities must procure CBG: 3% in FY 2026-27, 4% in FY 2027-28 and 5% from FY 2028-29 onwards, for the CNG (Transport) and PNG (Domestic) segments |
| CBG pricing framework | Administered CBG price of ₹2,110 per MMBtu, with a minimum ten-year horizon, supported by Government support and a market-based cost-sharing mechanism |
| Capital assistance | Up to ₹2 crore per ton per day (TPD) of installed CBG capacity for eligible greenfield projects, including plant machinery, feedstock aggregation, FOM/LFOM processing and manure value-addition equipment. Brownfield projects expanding capacity are also eligible |
| Pipeline infrastructure | Support of up to 80% of eligible capital expenditure for pipelines connecting CBG clusters to trunk pipeline networks, and up to 50% for standalone plants connecting to CGD networks |
| Credit guarantee | For eligible MSME-based CBG projects: cover of up to 85% of the outstanding amount at default, subject to prescribed project limits. Guarantee cap ₹20 crore per project for general MSME projects and ₹25 crore per project for women-led MSME projects |
| CBG Ecosystem Challenge Fund | Supports technology development, capacity building, feedstock assessment and aggregation, district-level ecosystem development and value addition in organic manure |
What the Government expects
The launch release puts the expected benefits at more than ₹40,000 crore in foreign-exchange savings, over ₹75,000 crore added to GDP and more than 1.5 lakh jobs, with 10 million tonnes of fossil fuel replaced, more than 40 million tonnes of CO₂ emissions reduced and 250 million tonnes of organic manure produced. These are the Government’s projections.
At the launch, the Secretary, Ministry of Petroleum and Natural Gas pointed to the role of State Governments — enabling State CBG policies, feedstock assessments, suitable land banks, faster approvals and infrastructure support.
What the releases do not give
The releases do not set out the eligibility conditions for a project, the “prescribed project limits” for the credit guarantee, the address of the portal or any last date for applications. They refer readers to the GOBARdhan Handbook for the detail.
What entrepreneurs should do
Those planning a CBG plant — private developers, MSMEs, cooperatives and rural entrepreneurs are all named in the Cabinet release — should read the GOBARdhan Handbook for the conditions of each component and apply through the Unified GOBARdhan Portal. MSME promoters, and women-led MSMEs in particular, should check the credit guarantee limits with their lender before financial closure.
Questions and answers
What is the GOBARdhan scheme?
A Central Sector Scheme for development of the Compressed Biogas (CBG) sector, approved by the Union Cabinet on 6 August 2026 with an outlay of ₹23,731 crore for FY 2026-27 to FY 2035-36 and launched on 1 October 2026. It is administered by the Ministry of Petroleum and Natural Gas.
How much capital assistance can a CBG plant get?
Eligible greenfield projects can receive capital assistance of up to ₹2 crore per TPD of installed CBG capacity, including support for plant machinery, feedstock aggregation and FOM/LFOM processing and manure value-addition equipment. Brownfield projects expanding their production capacity are also eligible.
What is the credit guarantee for MSME projects?
For eligible MSME-based CBG projects, the guarantee covers up to 85% of the outstanding amount at default, subject to prescribed project limits. The cap is ₹20 crore per project for general MSME projects and ₹25 crore per project for women-led MSME projects.
At what price will CBG be bought?
The scheme introduces an administered CBG price of ₹2,110 per MMBtu, with a minimum ten-year horizon according to the Cabinet release.
How does one apply?
Through the Unified GOBARdhan Portal launched on 1 October 2026. The releases do not give the portal address or the detailed eligibility conditions; the GOBARdhan Handbook is the reference guide.
Published 1 October 2026. Updated 8 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.