Cabinet approves GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) Scheme- A National Circular Bioenergy Scheme | Current Affairs | Vision IAS

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In Summary

  • GOBARdhan, launched in 2018 under SBM (Grameen), converts bio-waste into biogas.
  • The scheme, with an outlay of Rs. 23,731 crore until FY 2035-36, aims to boost Compressed Biogas (CBG) production and mobilize private investment.
  • Key initiatives include assured offtake, stable pricing, capital assistance, pipeline development, credit guarantee, and an ecosystem challenge fund.

In Summary

GOBARdhan was originally launched under SBM (Grameen) in 2018 as an integral component of Solid and Liquid Waste Management, converting bio-waste into biogas. 

Key Highlights of Scheme

  • Nodal Ministry: Ministry of Petroleum and Natural Gas
  • Outlay and Implementation Period: Rs. 23,731 crore for FY 2026-27 to FY 2035-36
  • Aim: Increase nearly ten-fold domestic Compressed Biogas (CBG) production, mobilize large-scale private investment, and create circular bioeconomy across country. 
  • Six growth engines: 
  • Assured CBG Offtake: For a reliable market. Procurement by city gas distribution entities will support Government’s blending obligations i.e. 3% in 2026-27, 4% in 2027-28 and 5% from 2028-29 onwards in CNG (Transport) and household piped natural gas (PNG) segments.
  • Stable CBG Pricing Framework: Administered CBG price of Rs. 2,110 per Metric Million British Thermal Unit (MMBTU) with 10-year government backed revenue assurance for producers.
  • Capital Assistance: Up to ₹2 crore/ tonne/ day for eligible greenfield and brownfield CBG projects.
  • Development of Pipeline Infrastructure: Supports cluster-based and standalone pipeline connectivity for CBG plants to reduce evacuation costs, enhance reliability, and expand market access. 
  • Credit Guarantee: Up to 85% loan guarantee for MSME based CBG projects, improving credit access and lender confidence. 
  • CBG Ecosystem Challenge Fund: Supports feedstock assessment, aggregation infrastructure, and technology adoption at district level. 
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MSME

सूक्ष्म, लघु और मध्यम उद्यम (Micro, Small and Medium Enterprises) भारतीय अर्थव्यवस्था का एक महत्वपूर्ण हिस्सा हैं। निर्यात संवर्धन में इनकी भूमिका महत्वपूर्ण है, और उन्हें अंतर्राष्ट्रीय व्यापार में भाग लेने और प्रक्रियाओं को समझने में सहायता की आवश्यकता होती है।

Metric Million British Thermal Unit (MMBTU)

A unit of energy measurement commonly used for natural gas and biogas. One MMBTU is equivalent to approximately one million British Thermal Units.

City Gas Distribution (CGD) entities

These are companies authorized to develop infrastructure and supply natural gas (including CBG) to domestic, commercial, and industrial consumers in a specified geographical area.

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