Union Cabinet Approves ₹23,731-Crore GOBARDHAN Scheme to Boost Biogas Production

The Union Cabinet on Thursday approved the ₹23,731-crore GOBARDHAN (Galvanizing Organic Bio-Agro Resources Dhan) National Scheme, a major initiative aimed at significantly expanding biogas production, promoting clean energy, and strengthening rural livelihoods. The scheme will be implemented from 2026–27 to 2035–36.

The programme seeks to convert cattle dung, crop residue, municipal organic waste, and other biomass into Compressed Biogas (CBG), supporting India’s transition to cleaner energy while improving waste management and reducing pollution.

The government said farmers will be among the biggest beneficiaries of the scheme. Instead of discarding or burning agricultural residue, they will be able to sell dung and crop waste to biogas plants, creating an additional source of income. The initiative is also expected to reduce stubble burning, helping curb air pollution and improve environmental sustainability.

The Centre has set an ambitious target of increasing the country’s biogas production nearly tenfold by establishing new CBG plants across India. To encourage investment, private companies, MSMEs, and entrepreneurs will receive financial and policy support for setting up biogas projects.

The scheme is also expected to generate employment opportunities in rural areas through the collection, transportation, processing, and conversion of organic waste into biogas. Officials said the initiative would strengthen the rural economy while promoting sustainable energy production.

To ensure the commercial viability of the projects, the government has announced several support measures, including assured procurement of biogas at fixed prices, capital subsidies for new plants, development of pipeline infrastructure for gas distribution, easy loans and credit guarantees for MSMEs and entrepreneurs, and district-level funds to promote biogas projects.

According to the government, expanding domestic biogas production will reduce India’s dependence on imported natural gas, improve energy security, and help save foreign exchange. It will also lower greenhouse gas emissions through better utilization of organic waste.

The Cabinet believes the GOBARDHAN scheme will transform agricultural and organic waste into a valuable energy resource, making rural India a key contributor to the country’s clean energy transition and long-term sustainable development.