Page 58 - Policy Economic Report -August 2026

POLICY AND ECONOMIC
OIL & GAS MARKET

By creating a robust offshore exploration ecosystem through better data, risk-sharing, common
infrastructure and domestic manufacturing capabilities, Samudra Manthan will enable India to build
national capability in deepwater exploration and production, strengthen our energy-security
resilience, and reduce our long-term dependence on imports.

2. Cabinet approves GOBARdhan, India’s National Unified Scheme for Compressed Biogas, with an
outlay of Rs.23,731 crore

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved GOBARdhan, the
National Circular Bioenergy Scheme, with a total outlay of Rs.23,731 crore.

GOBARdhan marks a defining moment in India’s clean energy journey. It will transform the country’s
abundant agricultural residue, cattle dung, press mud, municipal organic waste and other biomass
resources into clean fuel, organic manure, rural income and national economic value.

The Scheme will be implemented from FY 2026-27 to FY 2035-36 and will establish Compressed Biogas
as a major pillar of India’s future energy mix.

Through assured demand, remunerative and stable pricing, capital assistance, pipeline infrastructure,
credit support and technology development, GOBARdhan will provide the strong and predictable
framework required to take India’s CBG sector to national scale.

The Scheme aims to increase domestic Compressed Biogas (CBG) production nearly ten-fold, mobilize
large-scale private investment and create a vibrant circular bioeconomy across the country.

It reflects the Government’s clear vision:
• India’s waste will fuel India’s growth.
• India’s villages will become centres of clean energy production.
• India’s farmers will become partners in the nation’s energy security.

From a Strong Foundation to National Scale:

Over the past several years, the Government of India has systematically built the foundations of the
CBG sector through the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative,
the Market Development Assistance (MDA) Scheme for organic manure, the Biomass Aggregation
Machinery (BAM) Scheme, the Development of Pipeline Infrastructure (DPI) Scheme and Central
Financial Assistance (CFA) for CBG plants under the National Bioenergy Programme.

Together, these initiatives have enabled the commissioning of over 200 CBG plants, established
production and offtake systems, strengthened the organic manure value chain and demonstrated the
potential of CBG across feedstocks and geographies.

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