New Delhi, Oct 11: The GOBARdhan scheme has set a target of scaling up compressed biogas (CBG) production in India to more than 5 million metric standard cubic metres per day (MMSCMD) by FY 2035-36, backed by a total budgetary outlay of ₹23,731 crore over 10 years, according to the Ministry of Petroleum and Natural Gas.

In a post on X, the ministry outlined 10 key figures highlighting the scheme's financial support, policy measures and production targets, aimed at accelerating India's CBG sector and promoting waste-to-wealth initiatives.

The scheme envisages long-term policy support from FY 2026-27 to FY 2035-36, alongside measures to strengthen market linkages, improve project viability and expand the infrastructure required for CBG production and distribution.

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Under the framework, mandatory CBG blending obligations in the compressed natural gas (transport) and piped natural gas (domestic) segments are set to increase from 3% to 4% and subsequently 5%. The government has also outlined an administered CBG price of ₹2,110 per million British thermal units (MMBTU), payable to producers, and affordability support of up to ₹10 per kg to help keep the fuel competitive.

For project development, the scheme provides capital support of up to ₹2 crore per tonne per day (TPD) of capacity for CBG plants. More than 50% capital support has been earmarked for pipeline infrastructure, while micro, small and medium enterprise (MSME) CBG projects are eligible for an 85% credit guarantee cover.

The initiative also includes a dedicated ₹500-crore CBG Ecosystem Challenge Fund to support the development of the wider sector.

Through these measures, the government aims to expand domestic CBG production, strengthen rural economic opportunities and improve energy security by converting organic waste into a usable fuel. The initiative forms part of India's broader efforts to develop alternative fuels, reduce dependence on conventional energy sources and build a sustainable waste-management ecosystem.