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GOBARdhan – Galvanizing Organic Bio-Agro Resources Dhan is a Government of India initiative aimed at converting organic waste such as cattle dung, agricultural residue, municipal organic waste, food waste and other biomass into useful products including Compressed Biogas (CBG), biogas and organic manure.
Originally launched in 2018 under the Swachh Bharat Mission (Grameen), the initiative has now been strengthened through the National Circular Bioenergy Scheme, approved by the Union Cabinet on 6 August 2026.
The new framework has a total outlay of ₹23,731 crore and will be implemented from FY 2026-27 to FY 2035-36. The Ministry of Petroleum & Natural Gas (MoPNG) is the nodal ministry.
The scheme is designed to provide an integrated framework covering:
The scheme is intended to support eligible entities developing CBG projects and related infrastructure.
Potential beneficiaries include:
The capital assistance component covers both greenfield CBG projects and eligible brownfield projects undertaking capacity expansion.
Project-specific eligibility conditions, feedstock requirements, financing conditions and technical requirements will apply to each component.
GOBARdhan is primarily relevant to businesses involved in:
CBG / Bio-CNG Projects
Eligible Feedstocks
Projects can use suitable organic feedstocks including:
Related Value-Chain Activities
The scheme also supports development of:
The Government's 2026 framework specifically identifies agricultural residue, cattle dung, municipal organic waste and industrial organic waste as important feedstocks for the CBG ecosystem.
The 2026 GOBARdhan framework has six major growth components.
The scheme establishes a framework to strengthen demand for CBG through City Gas Distribution (CGD) entities.
The notified CBG Obligation trajectory is:
| Financial Year | CBG Obligation |
|---|---|
| FY 2026-27 | 3% |
| FY 2027-28 | 4% |
| FY 2028-29 onwards | 5% |
The obligation applies to the specified CNG (Transport) and PNG (Domestic) segments.
The scheme introduces a government-backed administered procurement price of:
₹2,110 per MMBtu
This is approximately equivalent to:
₹105 per kg of CBG
The pricing framework has a minimum 10-year horizon, providing longer-term revenue visibility for CBG producers.
A subsequent Government clarification dated 29 August 2026 explained that the ₹2,110/MMBtu figure is the procurement price paid to CBG producers, not the retail price paid directly by CNG or PNG consumers.
Eligible greenfield CBG projects can receive capital assistance of up to:
₹2 crore per TPD of installed CBG capacity
The support is also intended to cover eligible critical value-chain assets associated with:
Eligible brownfield projects undertaking capacity expansion are also covered under the framework.
Example
For a project with:
| CBG Capacity | Maximum stated capital assistance |
|---|---|
| 5 TPD | Up to ₹10 crore |
| 10 TPD | Up to ₹20 crore |
| 12 TPD | Up to ₹24 crore |
| 25 TPD | Up to ₹50 crore |
| 50 TPD | Up to ₹100 crore |
Important: These are illustrative calculations based on the announced ceiling of ₹2 crore/TPD. Actual eligible assistance will depend on the final operational guidelines, eligible expenditure, project appraisal and applicable conditions.
The scheme supports pipeline infrastructure connecting CBG plants with:
Both cluster-based and standalone pipeline infrastructure are contemplated under the scheme.
A dedicated credit guarantee mechanism will support eligible MSME-based CBG projects.
The scheme provides for credit guarantee coverage of up to 85% of eligible loans.
This is intended to improve access to institutional finance and reduce lending risk for eligible CBG projects.
Important: 85% is the credit guarantee coverage, not an 85% subsidy on the project cost.
The scheme establishes a Challenge Fund to support district-level development of the CBG ecosystem.
Potential activities include:
The major announced financial support limits are:
| Component | Financial Support |
|---|---|
| Capital Assistance | Up to ₹2 crore per TPD of installed CBG capacity |
| CBG Pricing | ₹2,110/MMBtu, approximately ₹105/kg |
| Credit Guarantee | Up to 85% of eligible loans |
| Pipeline Infrastructure | Support under applicable scheme framework |
| Challenge Fund | Support for approved ecosystem activities |
The ₹2 crore/TPD capital assistance should not be interpreted as an automatic cash subsidy payable to every CBG plant. The actual eligible amount will depend on the project's eligibility, approved cost, capacity, component-wise guidelines and implementation conditions.
The GOBARdhan framework provides a combination of:
The administered CBG procurement price provides a longer-term pricing framework.
Eligible greenfield and brownfield CBG projects can receive capital assistance.
Credit guarantee support can improve access to institutional finance.
The CBG Obligation framework is intended to create predictable demand through CGD entities.
Support for pipeline infrastructure can improve evacuation and market access.
The scheme supports feedstock aggregation and resource mapping.
Processing and value addition of organic manure are included in the ecosystem.
CBG projects can create employment across feedstock collection, transportation, plant operations, logistics and manure production.
Agricultural residue, cattle dung and other organic waste can be converted into renewable gas and organic manure.
The scheme integrates waste management, renewable energy, agriculture and rural economic activities into one value chain.
Projects must comply with the detailed operational guidelines and component-specific conditions notified by the Government.
Important conditions include:
The exact conditions should be checked against the component-specific guidelines when the relevant application window is opened.