Page 60 - Policy Economic Report -August 2026

August 2026 POLICY AND ECONOMIC
OIL & GAS MARKET

Component 3: Capital Assistance
Eligible greenfield CBG projects will receive capital assistance of up to Rs.2 crore per ton per day (TPD)
of installed CBG capacity.

The support extends beyond core plant machinery to critical value-chain assets for feedstock
aggregation, organic manure processing and value addition. Brownfield projects expanding their
production capacity will also be eligible.

This component will lower the initial capital burden, accelerate financial closure and expand
participation by private developers, MSMEs, cooperatives and rural entrepreneurs.

Component 4: Development of Pipeline Infrastructure
The Scheme supports both cluster-based and standalone pipeline infrastructure connecting CBG
plants with trunk pipelines and City Gas Distribution networks. Greater pipeline connectivity will
reduce evacuation costs, improve reliability, expand market reach and enable higher utilization of
domestically produced CBG.

Component 5: Credit Guarantee Support
A dedicated Credit Guarantee mechanism will strengthen lender confidence and expand the flow of
institutional credit to eligible MSME-based CBG projects.

By sharing a portion of lending risk, the mechanism will improve access to affordable finance,
reduce collateral requirements and support faster project development.

This will widen participation by MSMEs, women entrepreneurs and first-time developers, helping
build a broad, competitive and entrepreneurial CBG industry.

Component 6: CBG Ecosystem Challenge Fund
GOBARdhan establishes a dedicated CBG Ecosystem Challenge Fund to accelerate district-level
implementation and strengthen local value chains across the CBG ecosystem.

The Fund will support feedstock resource assessment and mapping, feedstock aggregation
infrastructure, district-level CBG development planning, technology adoption, process improvement,
value addition of organic manure, capacity building and stakeholder awareness.

Impact:
GOBARdhan is designed to convert the strong sectoral foundation created over recent years into a
nationwide scale-up of CBG. The Scheme is expected to deliver:
• Nearly ten-fold growth in domestic CBG production, creating a new pillar of India’s clean gas

economy.
• Greater energy security through increased domestic production of renewable gaseous fuel and

lower dependence on imported fossil fuels.

Page | 59