GOBARdhan is the Centre's ₹23,731 crore scheme, running from 2026-27 to 2035-36, to turn cow dung, crop waste and other organic waste into compressed biogas. It promises a government-backed gas price, reported at ₹2,110 per MMBTU, and capital support of up to ₹2 crore per tonne-per-day of plant capacity.
Updated 4 November 2026
If you keep cattle, run a gaushala, or just watch crop stubble burn every winter, this scheme is worth understanding. The Union Cabinet approved it on 6 August 2026, and it's back in the news in November 2026 as the rollout picks up. In simple terms, the government wants a lot more biogas plants in India, and it's putting money behind the idea that waste from your village can become fuel and fertiliser.
Quick facts
| Item | Details |
|---|---|
| Official portal | PIB Cabinet briefing, 6 August 2026 and the Ministry of Petroleum and Natural Gas |
| Helpline | Your district administration or agriculture office; the state nodal agency for biogas |
| Fee | No fee for farmers selling waste; plant developers follow the scheme's application process |
| Deadline | Scheme period: 2026-27 to 2035-36 (ten years). No single application deadline announced yet |
| Documents | For developers: project report, land papers, feedstock tie-ups, bank loan papers. For farmers: usually just a supply agreement with the plant |
| Total budget | ₹23,731 crore |
| Capital support | Up to ₹2 crore per TPD (tonne per day) of capacity |
| Credit guarantee | Up to 85% cover on eligible loans for MSME-led projects |
What exactly was approved?
The Cabinet briefing slides from 6 August 2026 describe GOBARdhan, short for Galvanizing Organic Bio-Agro Resources Dhan, as a scheme with six pillars:
| Pillar | What it means in simple words |
|---|---|
| Assured offtake | Every plant will be linked to a buyer, through the city gas network or a trunk pipeline |
| Price stability | A government-backed administered price for compressed biogas (CBG), so plants aren't hit by global fuel price swings |
| Capex support | Up to ₹2 crore per TPD for the plant, feedstock systems and organic manure machinery |
| Pipeline infrastructure | Support to connect CBG plants to trunk and city gas networks |
| Credit guarantee | Up to 85% cover on eligible loans for MSME projects |
| Challenge Fund | Money for district-level work, feedstock development, research, technology and awareness |
The government's reason is also in the slides. India imports about half its natural gas, and disruptions on the Strait of Hormuz route have hit a big share of LNG imports. Biogas made at home is seen as a way to cut that dependence.
The price and blending numbers
News reports in late 2026 say the administered CBG price is ₹2,110 per MMBTU, fixed for at least 10 years, and that city gas companies will have to blend CBG into their CNG and piped gas at rising levels, roughly 3% in 2026-27, 4% in 2027-28 and 5% from 2028-29. These numbers come from reports of the Cabinet decision, so check the final scheme guidelines from the Petroleum Ministry before using them for any business plan.
What the government says it'll achieve over ten years
From the same Cabinet briefing:
• CBG production growing about ten times.
• Over ₹40,000 crore saved in foreign exchange.
• 10 million tonnes of fossil fuel replaced.
• More than ₹75,000 crore added to GDP.
• Over 1.5 lakh jobs.
• 40+ million tonnes of CO2 emissions cut.
• 250 million tonnes of organic fertiliser produced.
These are projections, not guarantees. Still, they show the scale the government is aiming for.
How farmers and gaushalas can earn from it
This is the part most villagers care about. A CBG plant needs a steady supply of raw material, called feedstock. That includes:
• Cow and buffalo dung.
• Paddy straw, wheat straw and other crop residue.
• Sugarcane press mud.
• Vegetable market waste and food waste.
So a farmer or gaushala near a plant can sell dung or residue to it. Many plants also give back fermented organic manure, which is good for soil. In places like Punjab and Haryana, selling paddy straw to a plant is also an alternative to burning it.
How much you'll get per tonne isn't fixed by the scheme. It depends on the plant, the distance, and local demand. If a plant is coming up near you, ask about a written supply agreement with clear rates and pickup arrangements.
Who can set up a plant and get the subsidy
The ₹2 crore per TPD capital support is for people and companies who build CBG plants. That can include private companies, cooperatives, farmer producer organisations (FPOs), MSMEs and others, as the final guidelines will spell out. The 85% credit guarantee is specifically meant to help MSME-led projects get bank loans.
A rough idea of how it would work:
1. Prepare a detailed project report with a feedstock plan.
2. Tie up land and feedstock supply.
3. Apply under the scheme once the guidelines and portal are notified.
4. Arrange a bank loan, using the credit guarantee if eligible.
5. Build the plant and connect to the gas network for assured offtake.
Since the detailed operational guidelines may still be coming out in November 2026, watch the Petroleum Ministry website and PIB for the official application process. The older GOBARdhan unified registration portal at gobardhan.co.in has been used for registering biogas plants, but check whether it's being used for the new scheme too.
What it could mean for your village
• Cleaner surroundings: less dung piling up and less stubble burning.
• Extra income: selling waste that was earlier thrown away.
• Better soil: organic manure from plants.
• Local jobs: plant operations, collection and transport.
But there are open questions too. Small farmers with a couple of cattle may find it hard to sell tiny quantities unless there's a collection system. Plant viability depends on steady feedstock and timely payments. And past biogas schemes in India had many plants that stopped working. Your gram panchayat and local representatives can push for proper collection centres. Find your MP and MLA on NetaSampark.
How this connects to other schemes
If you're a farmer, make sure your other benefits are in order too. Our guides on the Farmer ID under AgriStack and the PM-KISAN 24th instalment can help.
What to watch for next
Over the coming months, keep an eye on three things. First, the final operational guidelines from the Petroleum Ministry, which will settle exactly who can apply and how. Second, which districts get Challenge Fund support, since that money is meant for local feedstock systems and awareness. Third, whether city gas companies near you actually sign offtake deals with new plants. If a plant is announced near your village, ask the developer, your gram panchayat and the district office about collection points, rates per tonne and payment timelines before you commit your dung or straw. A written agreement protects you if the plant changes hands or delays payments.
Frequently asked questions
What is GOBARdhan scheme 2026?
It's the Centre's ₹23,731 crore scheme, approved on 6 August 2026, to boost compressed biogas made from cow dung, crop waste and other organic waste. It runs from 2026-27 to 2035-36 and offers assured buyers, a stable gas price, capital support and loan guarantees.
Can a farmer get money for cow dung?
Yes, if there's a CBG plant nearby that buys feedstock. The scheme doesn't fix a rate per tonne, so the price depends on the plant and local demand. Ask for a written supply agreement.
Who can get the ₹2 crore per TPD subsidy?
Developers who set up CBG plants, which can include companies, cooperatives, FPOs and MSMEs, as per the final scheme guidelines. It's capital support linked to plant capacity, not a direct payment to individual farmers.
How long does the scheme run?
Ten years, from financial year 2026-27 to 2035-36.
Where do I register a biogas plant?
Watch the Ministry of Petroleum and Natural Gas and PIB for the official application process under the new scheme. The existing GOBARdhan unified portal has been used for registering biogas plants, so check there too.
Sources
• PIB: Cabinet briefing slides, 6 August 2026
• Ministry of Petroleum and Natural Gas