Cabinet Approves ₹23,731 Crore GOBARdhan Scheme to Boost India's Bioenergy and Circular Economy

The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved the GOBARdhan National Circular Bioenergy Scheme with an outlay of ₹23,731 crore ($2.49 billion) running from FY27 to FY36. Administered by the Ministry of Petroleum and Natural Gas, this strategic initiative aims to boost domestic compressed biogas (CBG) production nearly tenfold by converting agricultural residue, cattle dung, municipal organic waste, and press mud into clean energy and organic manure. Building upon existing programs like SATAT and the National Bioenergy Programme, the scheme is designed to enhance India’s energy security, curb fossil fuel imports, and accelerate the transition toward a circular bioeconomy. To drive execution and attract private investment, the scheme establishes a robust framework featuring six core pillars: guaranteed CBG off-take, an administered pricing mechanism of ₹2,110 per MMBTU, capital subsidies up to ₹2 crore per tonne-per-day capacity, pipeline connectivity support, credit guarantees for MSMEs, and a dedicated Ecosystem Challenge Fund. Beyond infrastructure expansion, GOBARdhan aims to foster rural economic growth by unlocking new income streams for farmers, cooperatives, and entrepreneurs. Ultimately, the model promotes sustainable waste management, lowers greenhouse gas emissions, and strengthens national self-reliance in alignment with the Atmanirbhar Bharat and Viksit Bharat visions.