India’s compressed biogas (CBG) ambitions depend on reliable waste supply chains, assured buyers and commercially viable projects. Experts highlighted these challenges at the 20th India Energy Summit, held in New Delhi on 13 October 2026. Despite government incentives and ambitious production targets, inconsistent feedstock availability, low plant utilisation and uncertain financial returns continue to slow the sector’s growth.
Deepak Raj Sar, Founder of ITY Consulting, said the key challenge lies in translating government policies into effective implementation. He pointed out that coordination gaps often emerge when policies move between different departments and stakeholders. “Most of the policies of the government are done with very, very good intent. Where they fall between the stools is when they have to be transferred from one table to the other table,” he said.
He also called for a cohesive ecosystem supported by a single monitoring mechanism to improve coordination and accelerate project implementation. India aims to convert agricultural residues and organic waste into domestic fuel, thereby reducing dependence on imported fossil fuels while addressing waste management challenges. However, reliable raw material supplies, consistent gas quality and assured demand remain essential to expanding CBG production.
Feedstock Availability Remains a Major Challenge
Shobhit Srivastava, Programme Manager at the Centre for Science and Environment (CSE), highlighted the gap between India’s CBG ambitions and actual project implementation. According to him, only 207 CBG plants were operational nationwide, against the original target of 5,000 plants under the Sustainable Alternative Towards Affordable Transportation (SATAT) scheme. He also pointed out that installed capacity does not necessarily translate into actual production, as only a few plants operate above 50% capacity utilisation.
Srivastava identified feedstock security as a critical requirement for improving plant performance. Agricultural residues, particularly paddy straw from Punjab and Haryana, offer significant potential. However, farmers have a limited period after harvesting to clear their fields. Therefore, timely biomass collection, transportation and storage are essential to ensure uninterrupted plant operations.
To address these challenges, he called for stronger biomass aggregation networks, adequate storage infrastructure and supportive state-level policies. Furthermore, Srivastava highlighted fermented organic manure (FOM) as an additional revenue opportunity for CBG producers. Fertiliser companies could help develop a market for this by-product by connecting producers with farmers through their established distribution networks.
Long-Term Offtake Agreements Can Improve Project Viability
From an industry perspective, Rishi Khanna, VP-Marketing at Fort Gloster Industries Limited, emphasised that investment decisions depend on predictable gas offtake, manageable logistics costs and faster regulatory approvals. He advocated long-term agreements between biomass energy producers and buyers to provide greater revenue certainty. In addition, a single-window clearance mechanism for government approvals and subsidies could reduce administrative delays and improve project execution.
Khanna also stressed the importance of locating CBG plants close to biomass-producing regions. This approach could lower transportation expenses, improve feedstock availability and enhance operational efficiency. Moreover, timely financing and predictable payments remain crucial for project developers. Delays and financial uncertainty can increase project costs, affect cash flows and weaken investor confidence.
Stronger Coordination Needed to Accelerate CBG Growth
India’s CBG sector requires more than policy incentives and production targets to achieve sustainable growth. Reliable feedstock supply chains, consistent fuel quality, assured offtake agreements and commercially viable by-product markets must develop together. Therefore, stronger coordination among government agencies, biomass suppliers, CBG producers and end users will be essential. As reported by bwsustainabilityworld.com, addressing these operational and financial bottlenecks can help India translate its CBG ambitions into sustained production, improved plant utilisation and commercially successful projects.
