Approval of GOBARdhan National Scheme

National Circular Bioenergy Scheme – GOBARdhan Overview

Government Approval:

• The Union Cabinet approved the National Circular Bioenergy Scheme – GOBARdhan with an outlay of ₹23,731 crores, aimed at enhancing the production of compressed biogas (CBG).

Duration:

• The scheme is effective until 2036.

Objectives:

1. Increase domestic CBG production nearly ten-fold.
2. Establish a stable framework for the CBG ecosystem through:
   • Assured offtake
   • Administered pricing
   • Capital subsidies
   • Infrastructure development
   • Easier access to finance

Feedstock Utilization:

• CBG will be produced from:
  • Agricultural residue
  • Cattle dung
  • Sugar industry waste
  • Municipal organic waste
  • Other biomass

Impacts on Industry:

• Goal to increase operational plants from approximately 300 to 5,000, creating lakhs of rural jobs.
• A.R. Shukla, President of the Indian Biogas Association, emphasized key imperatives addressed by the scheme: remunerative prices, assured offtake, and capital support.

Infrastructure Development:

• Essential development of pipeline infrastructure to ensure reliable CBG distribution.
• Support for both cluster-based and standalone pipeline infrastructure linking CBG plants with trunk pipelines and city gas networks.
• Increased pipeline connectivity is expected to:
  • Lower evacuation costs
  • Enhance reliability and market reach
  • Improve utilization of domestically-produced CBG

Pricing Mechanism:

• Administered price set at ₹2,110 per Metric Million British Thermal Unit (MMBTU) for CBG.
• Aimed at providing long-term revenue visibility and protecting consumer affordability through a combination of government support and market-based cost-sharing.

Financial Assistance:

• Capital assistance of up to ₹2 crore per ton per day (TPD) for eligible greenfield and brownfield CBG projects.
• Support covers core plant machinery, feedstock aggregation, and manure processing.
• Aims to reduce initial capital burdens, accelerate financial closures, and encourage participation by private entities, MSMEs, and rural entrepreneurs.

Broader Economic and Environmental Goals:

• Expected outcomes include:
  • Spurring private investment
  • Creating income opportunities for farmers and rural entrepreneurs
  • Enhancing management of agricultural and municipal waste
  • Expanding organic manure production
  • Lowering greenhouse gas emissions
• Alignment with national goals of:
  • Energy security
  • Waste-to-wealth initiatives
  • The vision of Atmanirbhar Bharat (self-reliant India)
  • The vision for a Viksit Bharat (developed India)

Significance:

• The GOBARdhan scheme is seen as a significant step towards establishing a nationally scaled clean energy industry, reflecting the government's commitment to sustainable energy and rural enterprise development.