Centre's GOBARdhan scheme offers up to Rs 30 crore subsidy for CBG plants

The central government has rolled out a new scheme offering financial support of up to Rs 30 crore to those setting up plants that convert waste into biogas or compressed biogas, known as CBG.

The Centre's GOBARdhan scheme provides eligible CBG projects with capital support, a guarantee to purchase the gas produced and a fixed rate for it. The government has put in place a new framework for the scheme covering financial years 2026-27 to 2035-36. Its main aim is to promote projects that turn cattle dung, agricultural residue, food waste and other organic waste into CBG and organic fertiliser.

GOBARdhan stands for Galvanising Organic Bio-Agro Resources Dhan. Under the scheme, cattle dung, crop residue, food waste and other organic waste are converted into biogas, CBG and organic fertiliser. The government has allocated Rs 23,731 crore for the scheme, saying it will give CBG plant owners greater clarity on their market and earning opportunities.

Eligible CBG projects can receive capital support of up to Rs 30 crore. For new greenfield plants, support of up to Rs 1.25 crore per tonne per day (TPD) of eligible CBG capacity can be provided. Brownfield projects can get support of up to 50 percent of the greenfield rate for additional capacity. Upgrading existing biogas plants to produce CBG attracts support of up to Rs 0.60 crore per TPD. In addition, support of up to 50 percent of expenditure on feedstock collection and organic fertiliser machinery is available, capped at Rs 0.75 crore per TPD.

Under the new scheme, eligible producers can opt for a guaranteed purchase of up to 100 percent of the CBG available for sale. The government has fixed a rate of about Rs 98 per kilogram for CBG based on 95 percent methane content. This rate will remain in effect until at least March 31, 2036.