Scheme

GOBARdhan National Circular Bioenergy Scheme

GS3 Energy and bioenergyGS3 Environment and waste managementPrelims and Mains

In the news since 6 August 2026 · last on 29 August 2026

Why in news
On 29 August 2026 the Ministry of Petroleum and Natural Gas said that the revised CBG price under the GOBARdhan Scheme will not materially burden CNG and household PNG consumers. It was replying to a newspaper article that claimed a large extra burden.
What it is
GOBARdhan is a unified national scheme run by the Ministry of Petroleum and Natural Gas to scale up Compressed Biogas (CBG). It brings under one framework assured offtake, pricing, capital aid, pipelines, credit guarantee and a challenge fund. It builds on earlier efforts such as SATAT, the MDA and BAM schemes and the National Bioenergy Programme.
Affordability support
The Government will give ₹10 per kg of CBG, about ₹215 per MMBtu for CBG with 95% methane. This is not recovered from gas consumers.
Pooling of cost
CBG is pooled with other domestic gas. Earlier its cost fell only on APM gas for CNG (Transport) and PNG (Domestic). The new base is about 2.5 to 3 times larger.
Nodal ministry
The scheme is run by the Ministry of Petroleum and Natural Gas.
CBG obligation
City Gas Distribution entities must meet a CBG Obligation of 3% in 2026-27, 4% in 2027-28 and 5% from 2028-29, in CNG (Transport) and PNG (Domestic).
Administered price
A stable administered CBG price of Rs.2,110 per MMBTU, with a minimum ten-year horizon.
Capital assistance
Eligible greenfield projects get up to Rs.2 crore per tonne per day of installed CBG capacity; brownfield expansions are also eligible.
Six components
Assured offtake, stable pricing, capital assistance, pipeline infrastructure, credit guarantee support, and a CBG Ecosystem Challenge Fund.

Don’t confuse with Procurement price vs consumer price: ₹2,110 per MMBtu is what producers get. It is not what CNG or PNG consumers pay directly.

Don’t confuse with GOBARdhan vs SATAT: SATAT was the earlier initiative to set up CBG plants and buy CBG. GOBARdhan is the newer unified framework that builds on it.

Don’t confuse with CBG vs CNG: CBG is purified biogas from organic waste and is chemically equivalent to natural gas; CNG is compressed natural gas, usually fossil.

Don’t confuse with Greenfield vs brownfield: Greenfield means a new plant; brownfield means expansion of an existing one.

Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.

Test yourself

Worth revising until Prelims 2028: most news questions come within two years of the event.

Each time it was in the news

  1. 29 August 2026

    On 29 August 2026 the Ministry of Petroleum and Natural Gas said that the revised CBG price under the GOBARdhan Scheme will not materially burden CNG and household PNG consumers. It was replying to a newspaper article that claimed a large extra burden.

  2. 6 August 2026

    On 6 August 2026, the Union Cabinet approved GOBARdhan, the National Circular Bioenergy Scheme for Compressed Biogas (CBG), with an outlay of Rs.23,731 crore, to run from FY 2026-27 to FY 2035-36.