Policy & Bio-CNG
GOBARdhan 2026, Explained for CBG Developers and Feedstock Suppliers
On 6 August 2026 the Union Cabinet approved GOBARdhan, India's National Unified Scheme for Compressed Biogas, with an outlay of ₹23,731 crore for FY2026-27 to FY2035-36.
The Ministry of Petroleum and Natural Gas issued component-wise operational guidelines on 15 September 2026. Here is what matters if you are building a CBG plant, or supplying one.
Six components, one idea
CBG offtake assurance
City gas distributors procure CBG to meet the blending obligation, with assured offtake of up to 100% of a plant's marketable gas.
CBG pricing framework
A stable administered price of ₹2,110 per MMBTU, with a horizon of at least ten years.
Capital assistance
Up to ₹2 crore per tonne per day of installed CBG capacity for eligible greenfield projects.
Pipeline infrastructure
Support for connecting plants to the gas grid.
Credit guarantee support
Guarantee cover on term loans for eligible borrowers.
CBG ecosystem challenge fund
Funding for equipment, technology and supply-chain innovation.
The numbers that decide bankability
The blending obligation is 3% of CNG and domestic PNG in FY2026-27, 4% in FY2027-28 and 5% from FY2028-29. Together with a fixed price and assured offtake, a lender can now model a CBG plant's demand and price with far less guesswork than before. That moves the risk elsewhere.
| Item | What the scheme says |
|---|---|
| Approval and outlay | Union Cabinet, 6 August 2026: ₹23,731 crore for FY2026-27 to FY2035-36 |
| Operational guidelines | Component-wise guidelines from the Ministry of Petroleum and Natural Gas, 15 September 2026 |
| Blending obligation | 3% in FY2026-27, 4% in FY2027-28, 5% from FY2028-29 (CNG and domestic PNG) |
| Offtake | Assured offtake of up to 100% of a plant's marketable gas |
| Price | Administered price of ₹2,110 per MMBTU, horizon of at least ten years |
| Plant capital assistance | Up to ₹2 crore per tonne per day (TPD) of installed capacity, eligible greenfield projects |
| Feedstock aggregation machinery | 50% of eligible cost, up to a ceiling per TPD of approved capacity; reimbursed against invoices; greenfield projects |
| Earlier schemes | SATAT's support structure and the Biomass Aggregation Machinery scheme are folded into GOBARdhan from 18 September 2026 |
Sources: Cabinet approval of GOBARdhan, 6 August 2026 (press coverage); Ministry of Petroleum and Natural Gas, Office Memorandum F. No. L-16022/9/2025-GP-I-Part(1), 15 September 2026.
What is less reported: feedstock is supported separately
Capital assistance has two parts: one for the plant, and one for feedstock aggregation machinery. Under the guidelines the machinery support is 50% of eligible cost, up to a ceiling per tonne per day of approved plant capacity, reimbursed against invoices, and available to greenfield projects. The eligible list names balers among other aggregation equipment. Earlier programmes, including the support structure under SATAT and the Biomass Aggregation Machinery scheme, are folded into GOBARdhan from 18 September 2026.
What it means for feedstock
With demand and price underwritten, the open question is supply: where it comes from, how much, when, and in what condition. Feedstock stops being a purchase order and becomes infrastructure with its own capital budget, storage and records. Plants that treat it that way will be easier to finance and easier to run. For the storage side of that equation, see why biogas plants fail on the calendar, not the engineering.
A short checklist for developers
- Register on the GOBARdhan portal and confirm that your project qualifies as greenfield.
- Model machinery capex both gross and net of the eligible assistance.
- Build the feedstock plan with acreage, harvest calendar and storage, not just a supplier list.
- Check which equipment is on the eligible list before you order.
- Keep invoices, proof of payment and photographs of installed machinery with serial numbers visible, because claims are made against them.
Frequently asked questions
How much capital assistance can a CBG plant get?
Up to ₹2 crore per tonne per day of installed capacity for eligible greenfield projects. A 15 TPD plant, for example, could receive up to ₹30 crore.
Does GOBARdhan replace SATAT?
SATAT's support structure is folded into GOBARdhan from 18 September 2026, according to the Ministry's guidelines.
Is feedstock aggregation supported?
Yes. Machinery for feedstock aggregation has its own assistance, subject to the guidelines' list and ceiling.
Policy details are still being operationalised. Confirm current terms on the GOBARdhan portal. This is not legal or financial advice.
Next step
Planning a CBG project? Book a scoping call and we will look at your feedstock plan against these terms.
Sources
- Cabinet approval of GOBARdhan, 6 August 2026 (press coverage).
- Ministry of Petroleum and Natural Gas, Office Memorandum F. No. L-16022/9/2025-GP-I-Part(1), 15 September 2026.