"GOBARdhan Scheme Launched to Scale Up Compressed Biogas Production"
Compressed Biogas (CBG)
purified biogas chemically similar to CNG, usable as transport and cooking fuel.
City Gas Distribution (CGD)
network distributing natural gas or CBG to households, industry and vehicles in a region.
GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) was first launched in 2018 under the Swachh Bharat Mission (Grameen) to convert cattle dung, crop residue and kitchen waste into biogas and bio-slurry as part of solid and liquid waste management. Over time, several separate instruments were added to support the sector: the SATAT initiative for market linkage, the Market Development Assistance (MDA) Scheme for organic manure, the Biomass Aggregation Machinery (BAM) Scheme, and the Development of Pipeline Infrastructure (DPI) Scheme. These were spread across different ministries, which created coordination gaps and left investors without a single predictable policy framework.
The Union Cabinet approved a restructured GOBARdhan as a Central Sector Scheme on 6 August 2026, with an outlay of ₹23,731 crore running from FY 2026-27 to FY 2035-36. The scheme has now been placed under a single nodal ministry, the Ministry of Petroleum and Natural Gas (MoPNG), ending the earlier multi-ministry fragmentation. This change is significant because India currently imports nearly half of its natural gas requirement, and a large share of this Liquefied Natural Gas moves through geopolitically sensitive shipping routes. Compressed Biogas, which is chemically similar to CNG, offers a domestic substitute that can reduce this import dependence over time.
Compressed Biogas (CBG) is produced by purifying raw biogas (generated from cattle dung, crop residue and other organic waste) to remove carbon dioxide and moisture, so that it can be used interchangeably with CNG in vehicles and PNG in households, and fed into existing gas pipelines and City Gas Distribution (CGD) networks.
The restructured scheme rests on six interventions: CBG Offtake Assurance, a CBG Pricing Framework, Capital Assistance for CBG Projects, Development of Pipeline Infrastructure, Credit Guarantee Support, and a CBG Ecosystem Challenge Fund. Under Offtake Assurance, CBG plants are mapped to specific CGD areas or clusters, and a CBG Obligation (CBO) requires CGD entities to procure a fixed share of their CNG and PNG sales as CBG: 3% in FY 2026-27, rising to 4% in FY 2027-28 and 5% from FY 2028-29 onwards. …
Consider the following statements regarding the CBG Obligation (CBO) under the GOBARdhan Scheme:
1.It mandates City Gas Distribution (CGD) entities to procure a rising share of Compressed Biogas (CBG).
2.The obligation is 3% in FY 2026-27 and rises to 5% from FY 2028-29 onwards.
3.The obligation applies only to the PNG (Domestic) segment and excludes CNG (Transport).
Which of the statements given above is/are correct?
Match the following GOBARdhan Scheme interventions with their primary function:
Intervention
A.CBG Offtake Assurance
B.Credit Guarantee Support
C.CBG Ecosystem Challenge Fund
D.Development of Pipeline Infrastructure
Function
1.Capital support for pipelines linking CBG clusters to trunk/CGD networks
2.Covers a share of default amount for MSME-based CBG project loans
3.Mapping CBG plants to CGD areas/clusters for assured market access
4.Supports technology development, capacity building and feedstock assessment
Select the correct answer using the codes below:
With reference to the credit guarantee mechanism for MSME-based CBG projects under the GOBARdhan Scheme, consider the following statements:
1.The guarantee covers up to 85% of the outstanding amount at default.
2.The guarantee cap is higher for women-led MSME CBG projects than for general MSME projects.
Which of the statements given above is/are correct?
Consider the following statements regarding the financial design of the GOBARdhan Scheme:
1.The administered CBG price is fixed at ₹2,110 per MMBtu.
2.Capital assistance for greenfield CBG projects is available up to ₹2 crore per TPD of installed capacity.
Which of the statements given above is/are correct?
Which ministry has been designated as the single nodal ministry for the restructured GOBARdhan Scheme?
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