India’s biogas sector is set to attract investments exceeding ₹5,000 crore in 2026–27, driven by rising interest from investors and industry stakeholders, according to the Indian Biogas Association (IBA). The association noted that the current calendar year has already seen strong momentum, with an expanding pipeline of compressed biogas (CBG) projects.
Growth in CBG infrastructure
As of now, more than 100 CBG plants have been commissioned across the country. In addition, investor participation and project development activity remained robust through 2025, signalling sustained confidence in the sector. Supporting this trend, government data shows that 94 operational CBG plants sold over 31,400 tonnes of compressed biogas during FY 2024–25. According to IBA, this performance provides clear evidence of accelerating market uptake and commercial viability.
Untapped potential in small and medium plants
Beyond large projects, the sector also holds significant potential for efficiency improvements and higher capacity utilisation in the country’s millions of small-scale traditional biogas digesters. At the same time, national programmes are scaling up support for medium-sized biogas plants.
These facilities not only provide cleaner cooking fuel but also generate rural employment and produce organic manure, strengthening the circular economy.
Policy support and ecosystem development
Looking ahead, the IBA expects a sharp increase in the commissioning of new CBG facilities. Moreover, the association anticipates the development of organised feedstock supply chains and more unified, integrated policy frameworks to accelerate biogas adoption nationwide.
GST reform to boost investments
Gaurav Kedia, Chairman of the IBA, said a relaxed GST regime would significantly improve ease of doing business in the CBG ecosystem. “A reduction of 7 per cent in the applicable GST rate for the CBG sector will materially enhance project viability. As a result, we expect a 4–5 per cent increase in new investments in the industry over the short to medium term,” Kedia said. He added that indirect benefits across the value chain would be even larger. “By 2026, the CBG industry size is expected to reach approximately $3–4 billion and further expand to nearly $5 billion by 2030,” he noted.
About the Indian Biogas Association
As reported by thehindubusinessline.com, the Indian Biogas Association is the country’s first and largest national professional body representing the biogas sector. Its members include technology providers, project developers, plant operators, policy experts, and representatives from science and research institutions across India.
