Cabinet clears ₹23.7k-crore GOBARdhan ‘waste-to-energy’ biogas scheme
New Delhi: The Union Cabinet on Thursday approved a ₹23,731-crore scheme to address the biggest hurdles holding back India's compressed biogas (CBG) sector. By assuring
New Delhi: The Union Cabinet on Thursday approved a ₹23,731-crore scheme to address the biggest hurdles holding back India's compressed biogas (CBG) sector. By assuring demand, offering a long-term pricing framework and supporting infrastructure, the government aims to unlock private investment, sharply raise domestic production and reduce dependence on imported fossil fuels. The Circular Bioenergy Scheme, called GOBARdhan, will create a nationwide waste-to-energy ecosystem. Th Cabinet also approved a proposal for a four-lane highway project in Assam. Together, the decisions involve an outlay of ₹32,701 crore. The GOBARdhan scheme, to be implemented over 10 years from fiscal year (FY27) to FY36, aims to increase domestic CBG production nearly ten-fold by providing assured demand, stable pricing, capital support, pipeline connectivity and easier access to credit. "India currently imports around 50% of its natural gas requirement, making domestically produced compressed biogas an important alternative, particularly amid geopolitical uncertainties, including disruptions around the Strait of Hormuz," information and broadcasting minister Ashwini Vaishnaw told reporters. Over the next decade, the government expects the increase compressed biogas output to help reduce natural gas imports and save over ₹40,000 crore in foreign exchange. The government has set a target of 5 million metric standard cubic metres per day (MMSCMD) of CBG output over a decade.
It estimates this will replace around 10 million metric tonnes (MMT) of fossil fuels. According to Vaishnaw, the scheme is expected to create a ₹75,000-crore industry. Administered by the petroleum and natural gas ministry, the scheme seeks to convert agricultural residue, cattle dung, press mud, municipal organic waste and other biomass into clean fuel and organic manure, creating additional income opportunities for farmers and rural entrepreneurs. Towards this CBG target, a si pronged framework covering the entire value chain was cleared. Also Read | Plan for more compressed biogas in city gas amid energy squeeze Under the first component, city gas distribution (CGD) firms will procure CBG to meet the mandatory blending obligation of 3% in FY27, 4% in FY28 and 5% from FY29 onwards in the transport and domestic piped gas segments, creating assured long-term demand for the producers. To improve project viability, it introduced an administered price of ₹2,110 per metric million British thermal unit (MMBTU) with a 10-year pricing framework, offering revenue certainty to investors. Eligible greenfield projects will get a capital assistance of up to ₹2 crore per tonne per day (TPD) of installed CBG capacity. Brownfield expansion projects will also qualify for support. The assistance extends beyond plant machinery to feedstock aggregation and organic manure processing infrastructure.
The BriefWire