The Ministry of Petroleum and Natural Gas is preparing an integrated GOBARdhan scheme to address key challenges facing India’s compressed biogas (CBG) sector, with the aim of strengthening the country’s energy security and supporting long-term growth of the industry.
Speaking at a Confederation of Indian Industry (CII) conference on CBG in New Delhi on Thursday, Alok Tripathi, Joint Secretary (Gas), Ministry of Petroleum and Natural Gas, said the proposed scheme will focus on issues such as feedstock availability, assured offtake, price certainty and long-term policy support, ANI reported.
Tripathi said the ministry has been tasked with developing the integrated GOBARdhan scheme based on concerns raised by CBG producers and other stakeholders.
“We are trying to address those issues and now we will be coming up with an integrated scheme… Through this scheme, we would like to take care of the challenges which have been highlighted by the CBG producers and other stakeholders,” he said.
He said the government also plans to introduce an offtake assurance mechanism to ensure that all CBG produced is utilised.
“We would like to have an offtake assurance mechanism so that whatever CBG is produced is secured. No molecule of CBG should be wasted. We would also like to have price certainty,” Tripathi said.
He noted that recent geopolitical developments, particularly in the Middle East, have reinforced the importance of increasing domestic energy production to improve India’s energy security.
According to Tripathi, India consumes around 190 million standard cubic metres (MSCM) of natural gas annually, with nearly half of the requirement being met through imports, making the country vulnerable to global supply disruptions.
“The recent crisis has taught us a very good lesson that if we have to improve our energy security, we have to be dependent on enhancing our production. That cannot be ignored. Otherwise, whenever any import disruption happens, we are always in trouble,” he said.
Tripathi described compressed biogas as a strategic domestic energy source that not only enhances energy security but also strengthens the rural economy, converts waste into valuable resources and supports a circular economy.
He said around 210 CBG plants have already been commissioned across the country, with a combined production capacity of 1,600-1,700 tonnes per day. In addition, about 300 more plants have been registered with the government, adding another 2,400-2,540 tonnes per day of planned capacity.
Despite the sector’s potential, Tripathi acknowledged that commercial challenges continue to affect investment and growth.
He said issues related to feedstock availability, disposal of by-products and policy uncertainty have created difficulties for project developers, highlighting the need for a stable policy framework that provides long-term confidence to investors and producers.
On pricing, Tripathi said the government believes CBG prices should no longer be linked to compressed natural gas (CNG) prices, which are influenced by international market movements.
He also highlighted CBG’s advantage over other clean fuels, noting that it can be transported through the existing natural gas pipeline network and dispensed using current infrastructure without requiring separate distribution systems.
Tripathi said the Centre has prepared a Model State CBG Policy and has encouraged states to adopt measures such as concessional land allocation, feedstock security and other incentives to support the sector.
He added that the government is also working with other ministries to create markets for CBG by-products. Discussions are underway with the Ministry of Power to promote the use of biomass residues in thermal power plants and with the Department of Fertilizers to encourage the use of organic manure produced by CBG plants.
Tripathi said awareness campaigns will also be conducted jointly with other ministries to improve the utilisation of by-products, warning that inefficient disposal could affect plant performance and slow the growth of the CBG ecosystem.
