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GOBARdhan CBG Scheme Guidelines: Offtake and Pricing

17 September 20261 min read
GOVERNMENT SCHEMESGOBARdhan CBGScheme Guidelines:Offtake and Pricing17 September 2026safalsetu.com

Why in the news

Operational rules were notified for the revamped GOBARdhan scheme, giving compressed biogas producers guaranteed buyers and a price formula.

Key facts

  • Outlay: ₹23,731 crore, spread across 2026-27 to 2035-36.
  • Cabinet nod in August 2026; guidelines notified in September 2026.
  • Renamed National Circular Bioenergy Scheme; the Ministry of Petroleum and Natural Gas is now in charge.
  • Target: lift CBG production almost ten times.

About GOBARdhan

  • Expansion: Galvanising Organic Bio-Agro Resources Dhan.
  • Started in 2018 inside Swachh Bharat Mission (Grameen), with Jal Shakti’s drinking water and sanitation department as nodal body.
  • Idea: waste to wealth and a circular economy.
  • Feedstock: crop residue, dung, press mud and municipal organic waste.

How a plant works

  1. Waste goes into an anaerobic digester, where bacteria act without oxygen.
  2. This yields biogas (about 55-65% methane) and nutrient-rich bio-slurry.
  3. Biogas either serves local needs or is cleaned and compressed to CBG (above 90% methane) for vehicles and gas grids.
  4. Drying the bio-slurry gives fermented organic manure, which farmers use instead of some chemical fertiliser.

What the guidelines assure

FeatureDetail
Full offtakeCity gas distribution entities must buy all CBG from registered plants
PricingAdministered CBG price, revised periodically, for bankable revenue
SupportCapital assistance, pipeline connectivity, credit guarantee, challenge fund
RegistrationUnified GOBARdhan portal

Related ecosystem

  • SATAT (2018): a MoPNG programme where oil marketing companies guarantee to buy CBG.
  • CBG blending obligation: starts at 1% in 2025-26 and moves up to 5% by 2028-29.
  • ₹1,500 per tonne Market Development Assistance on fermented organic manure.
  • Budget 2023-24: 500 waste-to-wealth plants with about ₹10,000 crore investment.

Exam angle

  • Full form of GOBARdhan, launch year and original ministry.
  • Outlay, duration and new nodal ministry.
  • What differs from SATAT: assured offtake plus a pricing mechanism.

Test yourself

1. What is the outlay of the National Circular Bioenergy Scheme (GOBARdhan) for 2026-27 to 2035-36?

The outlay is ₹23,731 crore.

2. Which ministry now runs the recast GOBARdhan scheme for compressed biogas?

It sits under the Ministry of Petroleum and Natural Gas.

3. Under the GOBARdhan CBG guidelines, who must buy the gas from registered plants?

City gas distribution entities must purchase all CBG.