The GOBARdhan scheme could become a major turning point for India’s compressed biogas (CBG) sector, helping the industry move beyond project announcements towards actual project execution. Although nearly 1,900 CBG projects are currently registered on the government portal, only 216 have been commissioned, with most operating at a relatively small scale. This gap highlights a key challenge for the sector. Entrepreneurial interest in CBG projects is strong; however, developers continue to face difficulties in making projects bankable and executing them at scale.
Policy Support Targets CBG Project Bankability
The new GOBARdhan framework directly addresses several of these challenges by introducing a combination of policy and financial support measures.
These include:
Assured offtake mechanisms
A 10-year pricing framework
Capital assistance
Pipeline connectivity
Credit guarantees
Together, these measures can reduce investment risks and improve the financial viability of CBG projects. More importantly, they could help position CBG as a bankable infrastructure asset rather than simply an emerging clean-energy opportunity.
GOBARdhan Outlay Could Unlock Larger Investments
The significance of GOBARdhan extends beyond its Rs 23,731 crore outlay. By creating greater visibility around offtake, pricing and financing, the framework could encourage developers and financial institutions to take a longer-term view of CBG projects. Consequently, stronger policy certainty could help convert a larger number of registered projects into operational plants.
India Needs Rapid CBG Capacity Expansion
India needs to add approximately 1,000 tonnes per day (TPD) of CBG capacity every year to reach around 4,000 TPD by FY29. Achieving this target would require nearly Rs 24,000 crore in investment over just three years. This expansion will require not only new capital but also efficient project development, reliable feedstock supply and high plant utilisation.
CBG Investment Could Cross Rs 50,000 Crore by 2030
With the enhanced policy support, India could potentially attract at least Rs 50,000 crore of new investment into CBG projects by 2030. However, achieving this investment potential will depend on the industry’s ability to overcome two critical operational challenges: reliable feedstock aggregation and consistently high plant utilisation. Developers will therefore need to build resilient supply chains while ensuring that plants operate efficiently and consistently.
Scale and Integration Will Define the Next CBG Growth Phase
The next phase of India’s CBG industry is likely to favour companies that can develop projects at scale and integrate the entire value chain. Successful players will need to bring together feedstock aggregation, CBG technology, engineering, procurement and construction (EPC), plant operations and gas marketing to deliver predictable and commercially viable gas output. As per the press release, GOBARdhan can provide the policy foundation for India’s CBG expansion. However, sustained investment and capacity growth will depend on the industry’s ability to convert this policy support into bankable projects, reliable operations and commercially sustainable CBG production.
