Cabinet Approves GOBARdhan Scheme To Boost Circular Bioenergy Ecosystem

Why in the News?

The Union Cabinet has approved the National Circular Bioenergy Scheme – GOBARdhan with an outlay of ₹23,731 crore to significantly increase Compressed Biogas (CBG) production, strengthen energy security, promote waste-to-wealth, and accelerate India’s transition towards a circular economy.

Key Features of the GOBARdhan Scheme:

•     The Union Cabinet has approved the National Circular Bioenergy Scheme – GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) with a financial outlay of ₹23,731 crore until FY 2035–36.
•     The scheme aims to increase domestic Compressed Biogas (CBG) production by nearly ten times through policy and financial support.
•     It provides:

○      Assured offtake of CBG.

○      Administered pricing mechanism.

○      Capital subsidies.

○      Expansion of gas pipeline infrastructure.

○      Easier access to institutional finance.

•     The Government intends to create a stable and predictable policy framework to attract large-scale private investment in the bioenergy sector.
•     The initiative supports India’s goals of clean energy, energy security, and sustainable waste management.

Significance and Expected Impact

•     The scheme promotes the conversion of agricultural residues, cattle dung, municipal organic waste, press mud from sugar mills, and other biomass into Compressed Biogas (CBG).
•     CBG can be blended with Compressed Natural Gas (CNG) and supplied through Piped Natural Gas (PNG) networks.
•     The initiative is expected to:

○      Reduce dependence on imported fossil fuels.

○      Improve farm income through utilisation of agricultural waste.

○      Generate large-scale rural employment.

○      Reduce stubble burning, methane emissions, and environmental pollution.

•     Industry experts estimate that the scheme could facilitate expansion from nearly 300 operational plants to around 5,000 CBG plants, strengthening India’s green fuel ecosystem.

 About Compressed Biogas (CBG) & Circular Bioeconomy :

•     Compressed Biogas (CBG) is a purified form of biogas produced through anaerobic digestion of biodegradable organic waste such as:

○      Agricultural residues

○      Cattle dung

○      Municipal solid waste

○      Food waste

○      Industrial organic waste

•     CBG has properties similar to Compressed Natural Gas (CNG) and can be used as a clean transport and cooking fuel.
•     GOBARdhan was originally launched under the Swachh Bharat Mission (Grameen) to promote waste-to-wealth initiatives and scientific management of biodegradable waste.
•     The scheme contributes to:

○      Circular Economy

○      Bioenergy Development

○      Climate Change Mitigation

○      Energy Security

○      Sustainable Rural Development

•     It also supports India’s commitments under the National Biofuel Policy, Net Zero emissions target (2070), and Sustainable Development Goals (SDGs).