The Ministry of Petroleum and Natural Gas is developing an integrated GOBARdhan scheme to tackle critical challenges in the compressed biogas (CBG) sector, including feedstock availability, offtake assurance, pricing certainty, and long-term policy visibility, with the primary goal of strengthening India's energy security, Alok Tripathi, Joint Secretary (Gas) at the ministry, announced on Thursday.
Integrated GOBARdhan Scheme to Address Sector Challenges
Speaking at a CII conference on CBG, Tripathi said, "We are trying to address those issues and now we will be coming up with an integrated scheme and the Ministry of Petroleum has been mandated to basically develop this scheme, which we are going to call the GOBARdhan scheme. Through this scheme, we would like to take care of the challenges which have been highlighted by the CBG producers and other stakeholders."
He emphasized the need for an offtake assurance mechanism to ensure that no CBG molecule is wasted and to provide price certainty for producers. "We would like to have an offtake assurance mechanism so that whatever CBG is produced is secured. No molecule of CBG should be wasted. We would also like to have price certainty," Tripathi said.
Energy Security Concerns Amid Geopolitical Developments
Tripathi noted that recent geopolitical developments, particularly in the Middle East, have underscored the urgency of enhancing India's energy security by boosting domestic natural gas production. India consumes approximately 190 million standard cubic metres (MSCM) of natural gas annually, with nearly 50% imported, leaving the country vulnerable to global supply disruptions despite diversified sourcing.
"The recent crisis has taught us a very good lesson that if we have to improve our energy security, we have to be dependent on enhancing our production. That cannot be ignored. Otherwise, whenever any import disruption happens, we are always in trouble," he stated.
CBG as a Strategic Domestic Energy Source
Tripathi described CBG as a strategic domestic energy source with multiple benefits beyond energy production. It enhances energy security, strengthens the rural economy, converts waste into wealth, and promotes a circular economy, making it a key pillar of India's clean energy transition.
Current Status of CBG Plants
Highlighting government initiatives, Tripathi said several ministries and state governments have introduced schemes to support the CBG ecosystem. As of now, around 210 CBG plants have been commissioned with a capacity of about 1,600-1,700 tonnes per day. An additional 300 plants have been registered with the Government of India, with a combined capacity of around 2,400-2,540 tonnes per day.
Commercial Challenges and Policy Framework
Despite its socio-economic value, the CBG sector faces commercial challenges. Tripathi acknowledged, "CBG ecosystem is having a lot of socio-economic value, but the business environment is uncertain because of many challenges. We had challenges related to feedstock. We had challenges related to disposal of by-products. There is a requirement that we need to have a policy framework which can mitigate these challenges and also give confidence to CBG producers that they have long-term policy visibility."
Pricing and Infrastructure Advantages
On pricing, Tripathi said the government believes CBG prices should no longer be linked to compressed natural gas (CNG) prices, which fluctuate with international markets. He also highlighted CBG's infrastructure advantage over other clean fuels: "If you take any other type of gas, let's say hydrogen, you need to create separate infrastructure. Whereas in the case of CBG, you don't require any separate infrastructure. You can use the existing pipeline network and existing dispensing infrastructure by simply injecting CBG."
State Policy and By-Product Utilization
The Centre has prepared a Model State CBG Policy and urged states to adopt provisions such as concessional land allocation, feedstock security, and other enabling measures. Tripathi further said the government is engaging with other ministries to create markets for CBG by-products. Discussions are underway with the Ministry of Power on using biomass residues for co-firing in thermal power plants and with the Department of Fertilizers on promoting the utilization of organic manure generated by CBG plants.
"We, along with other ministries, will be undertaking awareness campaigns so that the by-products are effectively utilised. If the by-products are not disposed of efficiently, the plant efficiency and growth of the CBG ecosystem will be affected," he added.
