GOBARdhan stands for Galvanizing Organic Bio-Agro Resources Dhan. The initiative was originally introduced in 2018 to promote the conversion of organic waste such as cattle dung, agricultural residue, kitchen waste and other biodegradable material into useful products such as biogas, organic manure and bioenergy.
What is the GOBARdhan Central Sector Scheme?
In 2026, the Government of India approved GOBARdhan as a new Central Sector Scheme for the development of the Compressed Biogas (CBG) sector. The scheme has a total outlay of ₹23,731 crore and will operate for 10 years, from FY 2026–27 to FY 2035–36. The Ministry of Petroleum and Natural Gas is the nodal ministry for the new integrated scheme.
The new scheme brings several CBG-related interventions together under one framework, including assured CBG offtake, pricing support, capital assistance, pipeline connectivity, credit guarantee support and ecosystem development.
GOBARdhan Scheme 2026 – Details
| Particular | Details |
|---|---|
| Scheme name | GOBARdhan Central Sector Scheme |
| Full form | Galvanizing Organic Bio-Agro Resources Dhan |
| Main focus | Compressed Biogas (CBG) development |
| Total outlay | ₹23,731 crore |
| Implementation period | FY 2026–27 to FY 2035–36 |
| Nodal Ministry | Ministry of Petroleum and Natural Gas |
| Nature | Central Sector Scheme |
| Main objective | Scale up India’s CBG ecosystem |
| Target | Nearly 10-fold increase in domestic CBG production |
| Major support | Offtake, pricing, capital assistance, pipelines, credit and ecosystem development |
The scheme was approved by the Union Cabinet on 6 August 2026 and formally launched on 1 October 2026.
Why was the GOBARdhan Central Sector Scheme introduced?
India generates large quantities of organic material, including cattle dung, agricultural residue, press mud, municipal organic waste and other biomass.
Instead of treating this material only as waste, the GOBARdhan framework seeks to use it as a resource for producing clean fuel and organic manure.
The new Central Sector Scheme addresses several challenges faced by the CBG industry, including:
- Uncertainty around long-term CBG demand
- Price and revenue uncertainty
- High initial project costs
- Feedstock aggregation challenges
- Pipeline connectivity limitations
- Access to institutional finance
- Need for better organic manure utilisation
- Fragmented support mechanisms
The government has therefore brought several forms of support under an integrated framework.
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What are the main components of the GOBARdhan Scheme?
The new scheme has six major interventions.
1. CBG Offtake Assurance
One of the important features is an arrangement intended to provide CBG producers with a dependable route to market.
CBG plants will be mapped with relevant City Gas Distribution (CGD) geographical areas or CBG clusters.
Under the CBG Obligation framework, CGD entities have a procurement obligation for CBG in the CNG transport and domestic PNG segment.
The prescribed obligation is:
- 3% in FY 2026–27
- 4% in FY 2027–28
- 5% from FY 2028–29 onwards
This framework is designed to improve demand visibility for CBG producers.
2. CBG Pricing Framework
The scheme provides an administered CBG price of ₹2,110 per MMBtu.
This is a procurement price paid to CBG producers under the applicable framework and should not be confused with the retail price paid directly by household PNG or CNG consumers. The government has specifically clarified this distinction.
The pricing framework is intended to provide producers with greater revenue visibility over the longer term.
3. Capital Assistance for CBG Projects
Capital support is another major component.
Eligible greenfield CBG projects can receive capital assistance of up to ₹2 crore per tonne per day (TPD) of installed CBG capacity, subject to the scheme’s prescribed conditions and limits.
The support can cover eligible elements beyond the core CBG plant, including certain feedstock aggregation and organic manure processing/value-addition infrastructure. Brownfield projects undertaking capacity expansion can also be eligible under the applicable provisions.
This support is intended to reduce the initial capital burden involved in setting up or expanding CBG projects.
4. Development of Pipeline Infrastructure
A CBG plant needs an effective method of transporting gas to the relevant gas network.
The scheme therefore includes support for pipeline infrastructure.
According to the government, support of up to:
- 80% of eligible capital expenditure may be available for pipelines connecting CBG clusters to trunk pipeline networks.
- 50% of eligible capital expenditure may be available for standalone plants connecting to CGD networks.
Actual assistance remains subject to the scheme’s eligibility conditions and approved project costs.
5. Credit Guarantee Support
Financing can be a major challenge for CBG projects, particularly for MSME-based projects.
The new scheme includes a dedicated credit guarantee mechanism for eligible MSME-based CBG projects.
The government has stated that the mechanism can cover up to 85% of the outstanding amount at default, subject to prescribed project limits.
The stated guarantee cap is:
- ₹20 crore per project for general MSME projects
- ₹25 crore per project for women-led MSME projects
Eligibility and actual guarantee coverage will depend on the applicable scheme conditions.
6. CBG Ecosystem Challenge Fund
The scheme also provides for an ecosystem development fund.
Its areas of support include:
- Technology development
- Capacity building
- Feedstock assessment
- Biomass aggregation
- District-level ecosystem development
- Organic manure value addition
- Process and technology improvements
This component is intended to address problems that cannot be solved simply by providing capital to individual plants.
Who can benefit from the GOBARdhan Central Sector Scheme?
The scheme is primarily designed around the CBG ecosystem, rather than being a direct cash-benefit scheme for individual households.
Potential participants and beneficiaries across the value chain include:
- CBG project developers
- Private companies
- MSMEs
- Cooperatives
- Rural entrepreneurs
- Farmers and biomass suppliers
- Feedstock aggregation businesses
- Organic manure producers
- CGD entities
- Technology providers
- Financial institutions
- Other eligible stakeholders in the CBG ecosystem
The government expects the scheme to encourage investment and create additional economic opportunities around biomass collection, processing and CBG production.
Is GOBARdhan a subsidy for individuals?
No, not in the sense of a general household cash subsidy.
This is an important distinction for people searching for “GOBARdhan subsidy” online.
The new Central Sector Scheme is primarily structured to support the CBG industry and associated infrastructure.
Separate GOBARdhan-related support also exists under other government programmes. For example, under Swachh Bharat Mission (Grameen) Phase II, financial assistance of up to ₹50 lakh per district is available for community or cluster-based biogas plants, subject to the applicable guidelines and approval process.
Therefore, the phrase “GOBARdhan scheme” can refer to different but related government interventions, and applicants should identify the particular component applicable to their project.
GOBARdhan and CBG: How does the process work?
The basic value chain can be understood as:
Organic waste → Feedstock collection → CBG plant → Biogas purification → Compressed Biogas → Gas network/market
At the same time, the digestion process can generate organic material that can be processed into products such as fermented organic manure.
This creates two connected value streams:
Clean fuel + organic manure
The government describes this as part of a circular bioeconomy in which waste materials are converted into useful economic resources.
GOBARdhan Registration Portal
The government operates a Unified GOBARdhan Registration Portal.
The portal is designed to provide registration for eligible biogas, CBG and Bio-CNG plants and facilitate access to support from different government departments.
The portal states that government or private entities operating or intending to establish eligible plants can register.
For the current portal structure, CBG registration is handled through the designated CBG platform, while the GOBARdhan portal provides the broader unified registration framework.
What information may be required for GOBARdhan registration?
Project applicants may need information relating to:
- Organisation/entity details
- Authorised person’s information
- Plant location
- Type of plant
- Feedstock source
- Proposed gas production capacity
- Plant status
- Project cost
- Funding arrangements
- Expected gas utilisation or offtake
- Organic manure output
- Relevant approvals and supporting documents
The exact requirements depend on the plant type and the particular support being sought.
Benefits of the GOBARdhan Central Sector Scheme
The new scheme is intended to create several economic and environmental outcomes.
Waste management
Agricultural residue, cattle dung and other organic material can be processed instead of being discarded or left unmanaged.
Clean energy production
CBG provides a domestically produced renewable gaseous fuel that can be used within the existing gas ecosystem, subject to applicable standards and infrastructure.
Rural economic opportunities
The CBG value chain can create demand for biomass collection, aggregation, transportation, plant operations and organic manure processing.
Support for farmers
Farmers and biomass suppliers can potentially participate in the feedstock supply chain.
Organic manure
CBG plants can also generate organic by-products that can be processed into products such as FOM and LFOM.
Reduced dependence on fossil fuel imports
The government expects increased domestic CBG production to contribute to energy security and reduce dependence on imported fossil fuels.
Employment generation
The government estimates that the scheme could support more than 1.5 lakh jobs over its implementation period.
What is the target of the GOBARdhan Scheme 2026?
The government aims to increase India’s domestic CBG production by nearly ten times, reaching around 5 MMSCMD under the new framework.
As of August 2026, the government reported that more than 217 CBG plants had been commissioned, with installed capacity exceeding 1,700 TPD.
The scheme is intended to take the CBG sector from its existing foundation toward much larger national-scale production.
GOBARdhan Central Sector Scheme vs Earlier GOBARdhan Initiative
It is useful to understand the difference because both are currently associated with the GOBARdhan name.
| Earlier GOBARdhan initiative | New Central Sector Scheme |
|---|---|
| Launched in 2018 | Approved in August 2026 |
| Started under SBM-G | New integrated Central Sector Scheme |
| Strong focus on village-level waste management | Strong focus on CBG sector development |
| Biogas and bio-slurry | CBG production and ecosystem |
| Coordinated through multiple government interventions | Ministry of Petroleum & Natural Gas as nodal ministry |
| Community/cluster biogas support under SBM-G | Integrated CBG offtake, pricing, capital, pipeline and finance support |
The original GOBARdhan initiative continues to be relevant to rural waste management and biogas, while the new Central Sector Scheme creates a national framework specifically for scaling the CBG industry.
Important points before applying
A person or organisation should not assume that registration automatically guarantees financial assistance.
The applicable support depends on:
- Project type
- CBG capacity
- Project location
- Eligibility conditions
- Applicable component
- Required approvals
- Project stage
- Funding arrangements
- Availability of scheme support
- Compliance with technical and financial requirements
Applicants should therefore check the latest official guidelines before making an investment or submitting a project proposal.
Frequently Asked Questions
What is the full form of GOBARdhan?
GOBARdhan stands for Galvanizing Organic Bio-Agro Resources Dhan.
What is the GOBARdhan Central Sector Scheme?
It is the Government of India’s integrated Central Sector Scheme for developing India’s Compressed Biogas (CBG) sector, approved in 2026 with an outlay of ₹23,731 crore.
What is the GOBARdhan Scheme budget?
The new Central Sector Scheme has a total outlay of ₹23,731 crore for FY 2026–27 to FY 2035–36.
Which ministry handles the new GOBARdhan Central Sector Scheme?
The Ministry of Petroleum and Natural Gas (MoPNG) is the nodal ministry for the new integrated CBG-focused scheme.
How much capital assistance is available?
Eligible greenfield CBG projects can receive capital assistance of up to ₹2 crore per TPD of installed CBG capacity, subject to the scheme’s conditions.
Is GOBARdhan available only to farmers?
No. The scheme covers the wider CBG ecosystem, including eligible project developers, MSMEs, cooperatives, rural entrepreneurs and other stakeholders.
Is GOBARdhan the same as a household biogas subsidy?
Not exactly. GOBARdhan is a broader government initiative. The new Central Sector Scheme is focused on CBG, while community and cluster biogas support is also available under SBM-G Phase II.
What is the GOBARdhan scheme implementation period?
The new Central Sector Scheme is scheduled for FY 2026–27 through FY 2035–36.
What is the GOBARdhan CBG price?
The scheme provides an administered CBG price of ₹2,110 per MMBtu under its pricing framework. This is a procurement price for producers, not a direct retail price paid by consumers.
The GOBARdhan Central Sector Scheme 2026 represents a new phase of India’s bioenergy policy. While GOBARdhan originally focused strongly on converting rural organic waste into biogas and bio-slurry, the new Central Sector Scheme creates an integrated framework for scaling Compressed Biogas production.
With ₹23,731 crore in planned outlay, a 2026–27 to 2035–36 implementation period, capital assistance, CBG offtake arrangements, pricing support, pipeline assistance and credit mechanisms, the scheme is designed primarily around developing the CBG industry rather than providing a general household cash benefit.