Government Launches Mega Biogas Plan to Boost Green Fuel and Cut Import Bills

The central government has launched a ₹23,731-crore GOBARdhan scheme to increase compressed biogas production by 10 times. Oil Minister Hardeep Singh Puri announced the initiative at Bharat Mandapam in New Delhi. The programme aims to turn agricultural and organic waste like animal dung, food waste, and crop stubble into clean domestic energy.

Economic and Environmental Goals

The scheme is projected to save over ₹40,000 crore on fuel imports and add more than ₹75,000 crore to the country's gross domestic product. Officials expect it to create over 1.5 lakh new jobs while replacing roughly 10 million tonnes of fossil fuel with clean gas. This transition is expected to cut carbon dioxide emissions by over 40 million tonnes and generate about 250 million tonnes of organic manure for farmers.

Financial Support and Pricing

To make projects commercially viable, the government is offering capital assistance of up to ₹30 crore per project across two main support components. Greenfield plants can receive ₹1.25 crore per tonne per day of eligible capacity. Brownfield projects get half that rate for new investments, while upgraded biogas plants can receive ₹60 lakh per tonne per day up to a ₹5-crore limit. Producers will also get a guaranteed market for all their output at a fixed price of ₹2,110 per million British thermal units.

Context

Compressed biogas serves as a cleaner alternative to traditional fossil fuels and helps reduce dependence on imported energy sources. Schemes like this typically aim to solve stubble burning and waste management issues while creating local rural income streams. Natural gas is widely promoted as a lower-pollution fuel option in modern energy transition plans.