GOBARdhan Scheme 2026 for CBG Producers: Price, Capital Support and Offtake
Last updated: 1 November 2026 · By KSR Green Bharat Team
Quick answer: GOBARdhan – the National Circular Bioenergy Scheme – is a ₹23,731 crore Central Sector Scheme approved by the Union Cabinet on 6 August 2026 and run by the Ministry of Petroleum and Natural Gas from FY 2026-27 to FY 2035-36. For CBG producers it offers six things: assured offtake through CBG obligations (3% → 4% → 5%), an administered price of ₹2,110 per MMBTU (about ₹105/kg) for at least ten years, capital assistance of up to ₹2 crore per TPD for eligible greenfield plants, pipeline connectivity support, an 85% credit guarantee for eligible MSME projects, and a CBG Ecosystem Challenge Fund.
Key takeaways
- The scheme consolidates CBG support that was earlier spread across four ministries.
- Price certainty and assured offtake address the two biggest risks that slowed SATAT-era projects.
- The target is nearly ten-fold growth in domestic CBG production.
- Registration on the GOBARdhan Unified Registration Portal is required to avail MoPNG benefits.
Why was GOBARdhan launched?
The SATAT initiative, launched in October 2018, set out to create a CBG market with oil marketing companies as buyers. Progress was slower than planned: by August 2026, 217 plants had been commissioned out of 1,908 registered. Developers pointed to price uncertainty, offtake risk, financing difficulty and gas evacuation as recurring hurdles. GOBARdhan brings these issues under one framework administered by MoPNG. The Government also cites energy security: India imports nearly 50% of its natural gas, and the scheme is projected to save over ₹40,000 crore in foreign exchange.
The six components of GOBARdhan
| Component | What it provides | Why it matters to developers |
|---|---|---|
| 1. Assured CBG offtake | CGD procurement supporting a CBG obligation of 3% (FY 2026-27), 4% (FY 2027-28) and 5% (from FY 2028-29) in CNG (transport) and PNG (domestic) | A long-term demand signal that improves bankability |
| 2. Stable pricing | Administered price of ₹2,110/MMBTU (≈ ₹105/kg CBG), minimum ten-year horizon | Revenue visibility for financial planning |
| 3. Capital assistance | Up to ₹2 crore per TPD of installed capacity for eligible greenfield projects, covering plant plus feedstock aggregation and manure processing assets; brownfield expansions eligible | Lower upfront capital burden |
| 4. Pipeline infrastructure | Support for cluster-based and standalone pipelines linking plants to trunk lines and CGD networks | Lower evacuation cost than cascade transport |
| 5. Credit guarantee | Coverage of up to 85% on eligible loans for MSME-based CBG projects | Easier bank finance, lower collateral needs |
| 6. CBG Ecosystem Challenge Fund | Feedstock mapping, aggregation infrastructure, district planning, technology, manure value addition, capacity building | Builds the local supply chain around plants |
How much capital support can a plant get?
The headline figure is up to ₹2 crore per tonne per day of installed CBG capacity for eligible greenfield projects, with the support extending beyond core machinery to feedstock aggregation and organic manure processing. Operational guidelines released after Cabinet approval set out how this is split across components and the caps that apply; reports on the September 2026 guidelines indicate support for new CBG capacity and a separate, lower rate for upgrading existing biogas plants to CBG, each with a per-project cap. Because these details determine your actual grant, read the latest official guidelines before finalising your project report.
What does the administered price mean in practice?
The Government equates ₹2,110 per MMBTU to roughly ₹105 per kg of CBG. The price is backed by a combination of government support and a market-based cost-sharing mechanism, with a minimum ten-year horizon. For a developer, this means revenue can be modelled with far more confidence than under earlier arrangements, although actual realisation will still depend on gas quality, delivery terms and transport cost.
What are the expected outcomes?
Over the ten-year horizon, the Government projects:
- Nearly ten-fold growth in domestic CBG production
- Over ₹40,000 crore in forex savings and displacement of 10 MMT of fossil fuel use
- More than ₹75,000 crore added to GDP and over 1.5 lakh jobs
- Reduction of more than 40 MT of CO₂ emissions
- Production of 250 MMT of organic fertiliser
How is GOBARdhan different from SATAT?
| Aspect | SATAT (2018) | GOBARdhan (2026) |
|---|---|---|
| Structure | OMC-led procurement initiative; related support spread across ministries | Single integrated Central Sector Scheme under MoPNG |
| Offtake | OMC procurement through expressions of interest | CBG obligation trajectory with CGD procurement |
| Price | Procurement price set by OMCs | Administered price, minimum ten-year horizon |
| Capital support | Through separate schemes (e.g., MNRE CFA) | Up to ₹2 crore per TPD within the scheme |
| Finance | Priority sector lending status | Plus up to 85% credit guarantee for MSMEs |
How to get started
- Assess feedstock availability and secure supply agreements.
- Register your project on the GOBARdhan Unified Registration Portal (gobardhan.eil.co.in).
- Prepare a detailed project report aligned with the scheme guidelines.
- Approach lenders with the credit guarantee in mind if you are an MSME.
- Plan pipeline connectivity or cascade logistics, and your manure marketing route.
For the technical side of building a plant, read our CBG plant setup guide.
How KSR Green Bharat can help
KSR Green Bharat supports CBG projects with technical coordination around project requirements, site priorities, equipment and installation, and handover planning. If you are evaluating a CBG project under GOBARdhan, share your feedstock base, location and project stage with our team.
Note: This article reflects official information published up to November 2026. Scheme guidelines may be updated; verify current terms on official portals before making investment decisions.
Frequently asked questions
What is the GOBARdhan National Circular Bioenergy Scheme?
It is a Central Sector Scheme approved by the Union Cabinet on 6 August 2026 with an outlay of Rs 23,731 crore, implemented by the Ministry of Petroleum and Natural Gas from FY 2026-27 to FY 2035-36. It brings CBG offtake, pricing, capital assistance, pipelines, credit guarantee and ecosystem support under one framework.
What price will CBG producers get under GOBARdhan?
The scheme introduces a government-backed administered price of Rs 2,110 per MMBTU, which the Government equates to about Rs 105 per kg of CBG, with a minimum ten-year pricing horizon.
How much capital assistance is available?
Eligible greenfield CBG projects can receive up to Rs 2 crore per tonne per day (TPD) of installed CBG capacity, with support extending to feedstock aggregation and organic manure processing. Brownfield capacity expansions are also eligible. Detailed per-component amounts and caps are set in the operational guidelines, so check the latest version.
What is the CBG obligation trajectory?
City gas distribution entities’ procurement supports a notified CBG obligation of 3 percent in FY 2026-27, 4 percent in FY 2027-28 and 5 percent from FY 2028-29 onwards in the CNG (transport) and PNG (domestic) segments.
Does GOBARdhan help with bank loans?
Yes. A dedicated Credit Guarantee Mechanism provides coverage of up to 85 percent on eligible loans for MSME-based CBG projects, aimed at improving access to institutional finance and reducing collateral requirements.
Sources
- PIB – GOBARdhan: Fuelling Clean Energy and Rural Growth (6 Aug 2026, PDF)
- GOBARdhan Unified Registration Portal
- Rural Voice – Rs 23,731 crore GOBARdhan scheme
Planning a biomass or CBG project? Send a project enquiry or call Sonu Choudhary (Energy Consultancy) at +91 98781 03873 or Krishna Dev Hada (Engineering) at +91 73004 37147. KSR Green Bharat is based in Kota, Rajasthan and serves projects across India.