The Union Cabinet has approved the GOBARdhan scheme, a Rs 23,731 crore initiative that aims to increase compressed biogas (CBG) production by ten times through the conversion of agricultural and organic waste into clean fuel. The government said the scheme establishes a dedicated CBG Offtake Assurance framework, designed to give producers a reliable and predictable market for their output.
The framework is expected to reduce uncertainty for investors and manufacturers by ensuring that biogas produced under the scheme will find buyers. The initiative is also intended to empower farmers, offering them a new source of income from waste materials that would otherwise be discarded. By turning agricultural residue and organic waste into fuel, the scheme addresses both waste management challenges and the country's growing demand for cleaner energy alternatives.
The 10-fold boost in compressed biogas production is a key target of the programme, which aligns with broader efforts to expand India's renewable energy capacity and reduce dependence on imported fuels. With the cabinet's clearance, the scheme now moves towards implementation, providing a structured market mechanism to support the biogas sector. The GOBARdhan scheme, with its substantial financial outlay, underscores the government's push to promote sustainable energy while supporting rural economies.