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Policy · Ministry of Petroleum and Natural Gas · Cabinet approval 6 August 2026

The CBG sector now has a ten-year floor.

GOBARdhan — the National Unified Scheme for Compressed Biogas — puts offtake, price, capital, pipelines and credit for the whole CBG value chain under one framework, from FY 2026-27 to FY 2035-36. This page states what was approved, what changed, and what it means for the way we build plants. Every figure carries its source.

₹23,731 cr
Total outlay
Source
PIB release, 6 Aug 2026
FY27 → FY36
Ten-year scheme window
Source
PIB release, 6 Aug 2026
₹2,110
Administered CBG price, per MMBTU
Source
PM India statement, 6 Aug 2026
≤ ₹2 cr / TPD
Capital assistance, greenfield CBG capacity
Source
Business Standard, 6 Aug 2026
01
What was approved

Six components, one platform.

Administered by MoPNG, the scheme brings the entire value chain — from feedstock to pipeline — under a single framework, with the stated aim of a near ten-fold increase in domestic CBG production.

A
Assured offtake

Guaranteed demand for CBG, replacing the voluntary expression-of-interest route that SATAT relied on. Offtake certainty is the single largest change to a plant's bankability.

B
Stable administered price

₹2,110 per MMBTU under a government-backed pricing framework with a minimum ten-year horizon — consumer affordability protected through Government support and a market-based cost-sharing mechanism.

C
Capital assistance

Up to ₹2 crore per tonne per day of installed CBG capacity for eligible greenfield projects — extending beyond core plant machinery to feedstock aggregation and organic-manure processing assets. Brownfield capacity expansions are also eligible.

D
Pipeline connectivity

Cluster-based and standalone pipeline infrastructure connecting CBG plants to trunk pipelines and City Gas Distribution networks, so gas moves by pipe rather than by road.

E
Credit guarantee

A dedicated guarantee mechanism sharing a portion of lender risk on eligible MSME-based CBG projects, to widen the flow of institutional credit.

F
CBG Ecosystem Challenge Fund

Support for district-level implementation, feedstock mapping and capacity building — the ground layer that decides whether a plant actually receives its tonnes.

02
Before and after

What actually changed for a plant's economics.

Lever
Before
Now
Offtake
Voluntary: OMCs invited expressions of interest under SATAT (2018). Blending Obligation announced separately — 1% of CNG/PNG in FY 2025-26, 3% in FY 2026-27, 4% in FY 2027-28, 5% from FY 2028-29.
Assured offtake as a scheme component, on top of the mandatory blending obligation. Demand is no longer a marketing exercise.
Price
Linked to 85% of the retail selling price of CNG — about ₹1,478 per MMBTU at the latest revision.
Administered at ₹2,110 per MMBTU with a minimum ten-year horizon, Government-supported. A rise of about 43% on the previous basis.
Capital
Central financial assistance under earlier bioenergy programmes, limited to core plant.
Up to ₹2 crore per TPD of CBG capacity for greenfield projects, extending to feedstock aggregation and organic-manure processing assets; brownfield expansion eligible.
Credit
Project-finance appetite thin for first-time CBG sponsors, particularly MSMEs.
A dedicated credit-guarantee mechanism sharing lender risk on eligible MSME-based projects.
Evacuation
A standalone pipeline-infrastructure scheme; most plants moved gas by cascade truck.
Cluster-based and standalone pipelines to trunk lines and CGD networks, integrated into the scheme.
Tax
Blended CNG carried the full 14% central excise on the CBG it contained.
Union Budget 2026-27 proposed exempting central excise on the CBG content of blended CNG, removing a double-taxation drag on offtake.
03
What it means for the way we build

The floor moves under every model on the ladder.

01
Revenue certainty for the greenfield model

An administered price with a ten-year horizon is exactly the input a greenfield biomass plant lacked. Our Sangola research plant is a greenfield project commissioning inside the scheme window (1 March 2027). Eligibility follows the component guidelines when notified — we do not assume it in our numbers.

02
The fertiliser line is now inside the capital case

Capital assistance that reaches organic-manure processing assets recognises the second product formally. Our plants are laid out with the digestate line as a product line, not a disposal step; the scheme now pays attention to the same half of the loop we do.

03
Pipeline connectivity favours the Parks model

Cluster pipelines to trunk lines and CGD networks are the backbone a BioCNG Park is built around. Evacuation by pipe removes the cascade-truck cost and the road risk from every plant in a cluster.

04
Sugar and MSW models gain a lender

The credit guarantee and assured offtake shorten the diligence path for mill-attached and municipal plants, where feedstock is contracted but sponsors are often first-time borrowers in this sector.

05
Feedstock mapping becomes public work

The Ecosystem Challenge Fund's district-level feedstock mapping aligns with how we already begin: walking and counting the catchment before sizing a digester.

06
How we model itMethod

Zero-support case first; eligible support added only once sanctioned, shown separately to lenders. The scheme improves the case — it is never the reason the case works.

04
The state layer

Maharashtra added its own floor in May.

The Maharashtra State CBG Policy 2026, released on 5 May 2026, sits beneath the national scheme for plants in our home state — including Sangola. It prioritises municipal organic waste and agricultural residue as feedstock and empowers local bodies to segregate and supply it.

VGF
Viability gap funding

Up to ₹75 lakh per tonne of capacity, with an overall ceiling of ₹15 crore per project; ₹500 crore proposed for FY 2026-27.

DBCC
District coordination committees

Collector-led District Compressed Biogas Coordination Committees, under an Executive Committee and a Chief Secretary-led steering committee — a defined route for approvals and feedstock.

05
Read this before modelling

Approved is not the same as operational.

Cabinet approval sets the framework and the outlay. MoPNG has since issued an implementing Office Memorandum; component-wise operational guidelines — the documents that define eligibility, application routes and disbursement — follow from the Ministry. Until a project is sanctioned under those guidelines, no support figure belongs in its base case. That is how we treat it, and how we would advise any co-investor to.

Sources
Press Information Bureau — Cabinet approves GOBARdhan, 6 August 2026 Prime Minister's Office — scheme statement and pricing framework, 6 August 2026 Business Standard — capital assistance and credit guarantee detail, 6 August 2026 Business Standard — MoPNG on revised CBG pricing vs the earlier 85%-of-CNG basis, August 2026 The Tribune — CBG Blending Obligation schedule, National Biofuels Coordination Committee Down To Earth — Union Budget 2026-27 excise exemption on blended CBG, February 2026 Down To Earth — Maharashtra State CBG Policy 2026, May 2026

Policy sets the floor. The plant sets the return.

See how a plant turns the framework into gas, fertiliser and a catchment that stays.

How a project works Investment models