India unveils GOBARdhan rules to boost biogas production with price guarantees

India's government has rolled out operational guidelines for the GOBARdhan scheme, setting out mechanisms to make biogas production from organic waste commercially attractive over the next decade. The Petroleum and Natural Gas Ministry released the guidelines on September 15, establishing a framework under which compressed biogas (CBG) producers will receive assured offtake of up to 100 per cent of their output and government-administered pricing for a minimum of 10 years. The scheme will operate from 2026-27 through 2035-36.

The GOBARdhan initiative—an acronym for Galvanising Organic Bio-Agro Resources Dhan—converts organic waste including cattle dung, agricultural residue, food waste and other biomass into valuable products such as biogas and CBG that can be blended with natural gas for supply to end users. The government also provides capital assistance to project developers, aiming to create a more predictable market environment for renewable energy producers and reduce reliance on conventional fossil fuels.

By combining assured offtake agreements with price support and capital subsidies, the scheme addresses long-standing commercial challenges that have hindered waste-to-energy projects in India. Officials expect the comprehensive framework to encourage private sector participation and establish sustainable operations across agricultural and waste-rich regions, while contributing to the government's renewable energy targets and supporting rural economies through improved waste utilisation.