Skip to content

GOBARdhan Bioenergy Scheme: Rs 23,731 Crore CBG Plan

11 August 20261 min read
GOVERNMENT SCHEMESGOBARdhanBioenergyScheme: Rs 23,731Crore CBG Plan11 August 2026safalsetu.com

Why in the news

The Union Cabinet cleared a large programme that turns the 2018 GOBARdhan waste initiative into a national clean-energy and circular-economy mission centred on CBG.

Key facts

  • Nodal ministry: Petroleum and Natural Gas.
  • Feedstock: crop residue such as paddy straw, cattle dung, sugar-mill press mud, municipal organic waste, other biomass.
  • Outputs: CBG blended into CNG (vehicles) and PNG (kitchens), plus fermented organic manure from digestate.
  • Aims: cut imported gas dependence, build a circular bioeconomy, attract private money, create rural jobs.

Six growth engines

  • Guaranteed purchase by City Gas Distribution entities.
  • Stable administered price giving bankable revenue.
  • Capital assistance for plants.
  • Pipelines linking plants to the grid.
  • Credit guarantee for bank lending.
  • Challenge Fund for innovation and feedstock supply chains.

Background

YearDevelopment
2018SATAT began under MoPNG, promising purchase by oil marketing companies; slow due to feedstock, pricing and finance gaps
2018GOBARdhan started within SBM (Grameen), Ministry of Jal Shakti
2023One GOBARdhan registration portal lists biogas and CBG plants
Budget 2023-24500 waste-to-wealth plants (200 CBG, 75 of them urban; 300 community or cluster) for about Rs 10,000 crore
2025-26CBG blending obligation starts at 1% of CNG and PNG, reaching about 5% by 2028-29

Fermented organic manure gets Market Development Assistance at Rs 1,500 a tonne.

Significance

  • Stubble, dung and urban waste become energy, easing smoke and methane.
  • CBG displaces imported LNG and diesel, aiding energy security.
  • Digestate manure reduces chemical fertiliser use.

Exam angle

  • Outlay Rs 23,731 crore; nodal ministry Petroleum and Natural Gas.
  • Full form: Galvanising Organic Bio-Agro Resources Dhan.
  • Related terms: SATAT, CBG blending obligation.

Test yourself

1. What is the outlay of the National Circular Bioenergy Scheme - GOBARdhan approved by the Cabinet?

The scheme has an outlay of Rs 23,731 crore for FY 2026-27 to FY 2035-36.

2. Which ministry administers the National Circular Bioenergy Scheme - GOBARdhan?

The scheme is administered by the Ministry of Petroleum and Natural Gas.

3. What does the SATAT initiative, mentioned with the GOBARdhan scheme, mainly invite entrepreneurs to do?

SATAT invited entrepreneurs to set up CBG plants with assured purchase by oil marketing companies.