Cabinet approves ₹23,731 crore GOBARdhan Scheme to boost clean energy, circular bioeconomy

New Delhi:-The Union Cabinet has approved the GOBARdhan – National Circular Bioenergy Scheme, a landmark clean energy initiative with a total outlay of 23,731 crore rupees, aimed at accelerating India’s transition towards a sustainable and self-reliant energy future.

Chaired by Prime Minister Narendra Modi, the Cabinet approved the scheme, which will be implemented from the financial year 2026-27 to 2035-36.

The GOBARdhan Scheme seeks to convert agricultural residue, cattle dung, press mud, municipal organic waste and other biomass into Compressed Biogas (CBG), a clean and renewable fuel that is chemically equivalent to natural gas.

The initiative also promotes the production of organic manure, creating a circular economy where waste is transformed into valuable resources.

The government aims to increase domestic production of Compressed Biogas nearly ten-fold over the next decade, positioning CBG as a major pillar of India’s future energy mix.

By expanding the use of domestically produced renewable gas, the scheme is expected to reduce dependence on imported fossil fuels, strengthen energy security and contribute to the country’s climate commitments.

Administered by the Ministry of Petroleum and Natural Gas, the scheme provides a comprehensive framework to support the entire CBG value chain. It includes assured market demand, stable and remunerative pricing, capital assistance for project developers, expansion of pipeline infrastructure, easier access to credit and support for technological innovation. These measures are expected to improve project viability and attract significant private investment in the clean energy sector.

The initiative builds upon the foundation laid by earlier programmes such as the “Sustainable Alternative Towards Affordable Transportation” (SATAT) initiative, the Market Development Assistance Scheme for organic manure, the Biomass Aggregation Machinery Scheme, the Development of Pipeline Infrastructure Scheme and financial assistance under the National Bioenergy Programme.

Together, these initiatives have already facilitated the commissioning of more than 200 Compressed Biogas plants across the country.

Beyond clean energy production, the GOBARdhan Scheme is expected to generate substantial economic and environmental benefits. Each CBG plant will create a local circular economy by providing new income opportunities for farmers through the supply of agricultural residue and cattle dung.

It will also generate employment in biomass collection, transportation, plant operations and organic manure production, while encouraging scientific waste management in both rural and urban areas.

The scheme is also expected to help curb the burning of crop residue, reduce methane emissions from unmanaged organic waste and lower greenhouse gas emissions, contributing to cleaner air and a healthier environment.

By converting waste into clean fuel, the initiative supports India’s broader vision of achieving sustainable development alongside economic growth.

With the approval of the GOBARdhan Scheme, the government aims to transform India’s villages into centres of clean energy production, empower farmers as partners in the nation’s energy security and establish a vibrant circular bioeconomy that supports long-term energy resilience and green growth.