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GOBARdhan Scheme Rolls Out: Assured CBG Offtake, 10-Year Price Support to Boost Waste-to-Energy
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News18•20-09-2026, 12:45
GOBARdhan Scheme Rolls Out: Assured CBG Offtake, 10-Year Price Support to Boost Waste-to-Energy
- •The government has operationalized its Rs 23,731-crore GOBARdhan scheme for compressed biogas (CBG), offering producers assured offtake of up to 100% of their output and a government-backed administered price for at least 10 years.
- •The scheme, running from 2026-27 to 2035-36, aims to make waste-to-energy projects more commercially viable and attract private investment by establishing a predictable market for CBG producers.
- •GOBARdhan, which stands for Galvanising Organic Bio-Agro Resources Dhan, integrates six components: assured CBG offtake, a pricing framework, capital assistance, pipeline infrastructure, credit guarantee support, and a CBG ecosystem challenge fund.
- •A new administered CBG price of Rs 2,110 per million British thermal unit (equivalent to about Rs 98 per kg) is set for a minimum of 10 years, with affordability support provided to the designated synchro operator, GAIL.
- •Capital assistance of up to Rs 30 crore per CBG project is available, linked to project milestones and performance, with the scheme marking a transition from the earlier SATAT initiative to a more integrated framework for the CBG ecosystem.
Key Questions Answered
The government has operationalised the Rs 23,731-crore GOBARdhan scheme to convert organic waste into compressed biogas, which will run from the 2026-27 to 2035-36 financial years to establish a predictable market for producers.
City gas distributors are required to procure and sell CBG as part of their overall gas supplies following a phased obligation of 3 percent in FY2026-27, 4 percent in FY2027-28, and 5 percent from FY2028-29 onwards.
Producers receive an administered CBG price of Rs 2,110 per MMBtu guaranteed for a minimum of 10 years until March 31, 2036, alongside capital assistance of up to Rs 30 crore per project across eligible components.
