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GOBARdhan Scheme · Compressed Biogas (CBG) · MoPNG Operational Guidelines, 15 Sep 2026

GOBARdhan Scheme for CBG: from feedstock to first sale, with one partner

The Government of India has notified component-wise Operational Guidelines for the GOBARdhan Scheme (Galvanizing Organic Bio-Agro Resources Dhan), with an outlay of ₹23,731 crore for FY 2026-27 to FY 2035-36. MITCON supports CBG developers, lenders and investors end to end: feedstock assessment, bankable DPR, scheme applications, financing support, EPC and PMC.

₹23,731 crTotal scheme outlayFY 2026-27 to FY 2035-36
₹2,110/MMBTUAdministered CBG Price (initial)≈ ₹98/kg at 95% methane, excl. taxes & compression
₹1.25 cr/TPDCapital Assistance, greenfieldUp to ₹30 cr per project
85% coverCredit guarantee (CGSCBG)No collateral on guaranteed portion
Scheme at a glance

What is the GOBARdhan Scheme?

A Central Sector Scheme of the Ministry of Petroleum & Natural Gas, approved on 6 August 2026, to scale up production and use of CBG through assured offtake, stable pricing, capital assistance, pipeline infrastructure, credit guarantee and ecosystem development. It subsumes SATAT, the DoF Market Development Assistance, MNRE's Waste to Energy CFA, Biomass Aggregation Machinery and Development of Pipeline Infrastructure with effect from 1 September 2026.

I

Assured Offtake

Firm tripartite offtake with Take-or-Pay on the buyer, through the CGD route or the trunk pipeline route. CBG Obligation on CGD entities: 3% (FY 26-27), 4% (FY 27-28), 5% from FY 28-29.

II

Pricing Framework

Administered CBG Price of ₹2,110/MMBTU paid by GAIL as Synchro Operator, in place for a minimum of 10 years (to 31 March 2036), decoupled from CNG retail price.

III

Capital Assistance

₹1.25 cr/TPD for greenfield plants, plus 50% machinery reimbursement. Maximum ₹30 cr per project. Released in three milestone tranches.

IV

Pipeline Infrastructure

50% of eligible cost for CGD connectivity and cluster/trunk pipeline connectivity, up to 75 km per plant. Steel: lower of 50% or ₹50 lakh/km. MDPE: lower of 50% or ₹7.5 lakh/km.

V

Credit Guarantee (CGSCBG)

85% guarantee cover through NCGTC, up to ₹20 cr (₹25 cr for women-led MSME), 15-year tenor with 18-month moratorium. CBG recognised as eligible agri-infrastructure for PSL.

VI

Ecosystem Challenge Fund

₹500 cr for District CBG Challenges (₹5 cr / ₹2 cr) and Ecosystem Enablement Grants of up to 50% of cost for equipment, process and FOM/LFOM value addition.

Our end-to-end CBG offering

One partner from feedstock assessment to a running plant

GOBARdhan benefits are tied to registration, a valid Plant ID, a DPR in the prescribed format, firm offtake, and milestone-linked compliance. MITCON covers each step so nothing slips between consultants, contractors and lenders.

Step 1

Feedstock assessment

Catchment-level availability, aggregation logistics and feedstock mix (including the <50% MSW/sewage eligibility test).

Step 2

Bankable DPR

DPR to the Appendix-II format, technology selection, PLF modelling against grant tranche thresholds, financial model.

Step 3

Approvals & scheme filing

Portal registration and Plant ID, CTE/PESO, EIA support, In-Principle Approval and Appendix-I to VI documents.

Step 4

Offtake & financing

Firm-offtake strategy, Tripartite Agreement review, lender-facing TEV, Jan Samarth and CGSCBG application support.

Step 5

EPC & PMC

Engineering, procurement and construction, or independent project management, with SCADA, online GC/MS and interlocks built in.

For project developers

How MITCON works alongside you

  • Feedstock & techno-economic assessment. Press-mud, spent wash, napier grass, agri-residue and other feedstock surveys, digester and upgradation technology choice.
  • Bankable DPR and financial model. Built around the Administered CBG Price, Take-or-Pay and Supply-or-Pay exposure, grant tranche timing and Bank Guarantee cost.
  • Scheme application and tranche management. In-Principle Approval, first-sale reporting, performance-milestone documentation with the PMA.
  • Offtake and contract advisory. Mapping and Residual Intake Capacity analysis, firm-offtake request strategy, Tripartite Agreement review.
  • Environmental clearance and compliance. EIA, Consent to Establish / Operate, PESO licensing.
  • EPC and PMC. Turnkey and project-management support for CBG plants, including the SCADA, online gas chromatograph and interlock systems that are now eligibility conditions.
For lenders, FIs & investors

Independent appraisal support

  • Techno-Economic Viability (TEV) reports, including the TEV required under the CGSCBG guidelines
  • DPR and cost appraisal, PLF and technology assessment
  • Feedstock and catchment due diligence, MSW/sewage share verification
  • Tripartite Agreement and scheme-compliance review
  • Lender's Independent Engineer during construction and operations
  • CTE, CTO and PESO status verification
Quick tool

Indicative Capital Assistance estimator

Enter your plant capacity to see the ceiling under the notified rates and how it is released. The ceiling is not a sanction: actual assistance depends on eligibility, approved cost and availability of funds.

Rates used: Sub-component I greenfield ₹1.25 cr/TPD; brownfield 50% of that rate on incremental capacity created through fresh capex; own biogas plant upgraded to CBG ₹0.60 cr/TPD (max ₹5 cr); +20% for special category areas. Sub-component II machinery reimbursement: 50% of eligible cost, ceiling ₹0.75 cr/TPD, greenfield only. Aggregate cap ₹30 cr per project. Tranches: 25% at CTE/PESO approval, 25% at first sale, 50% after performance testing (graded on PLF).

Planning point: the ₹30 cr cap is reached at about 24 TPD on Sub-component I alone, so larger plants gain little extra grant per TPD. Size the plant on feedstock and offtake economics, not the grant.

Proven CBG experience

MITCON's experience, in numbers

Feasibility studies, technical project reports and DPRs for CBG plants across feedstocks and states, backed by decades of sugar, cogeneration and distillery project delivery.

CBG projects
Delivered
25CBG projects with DPR / feasibility / technical reports
16CBG clients across sugar, distillery, OMC-subsidiary and private developers
338 TPDCumulative CBG capacity studied, from 3 to 25 TPD plants
9+ StatesKarnataka, Maharashtra, UP, Punjab, Bihar, West Bengal, AP, MP, Gujarat
13Bankable CBG DPRs, incl. feedstock survey-led DPR
10Detailed Feasibility Reports for a leading OMC subsidiary
₹3,300+ CrProject investment covered in CBG-linked studies
3Feedstock routes: press-mud, spent wash, napier grass
Biofuel & Green Chemistry division
Delivered
1,000+ MWPower projects documentation
90Independent & co-generation power projects
60+Bankable DPRs per year
4,00,000+ TDCConsolidated sugarcane crushing
₹2,500+ CrInvestments in agro & food processing projects consultation
₹500+ CrAgro & food processing projects, grant-in-aid approval consultation
20,000+ KLPDDistillery / ethanol plants

Sugar projects

  • Pre-investment services for 400+ new / expansion & modernization sugar plants, refineries and jaggeries
  • Engineering / project management services for 40+ new & expansion / modernization projects

Distillery / ethanol projects

  • Pre-investment services for 300+ new / expansion / standalone plants, RS / ENA plants
  • Engineering / project management services for 20+ distillery / ethanol plants
Frequently asked questions

GOBARdhan Scheme FAQs

What is the GOBARdhan Scheme for CBG?

A Central Sector Scheme of the Ministry of Petroleum & Natural Gas with an outlay of ₹23,731 crore for FY 2026-27 to FY 2035-36. It provides assured offtake, an administered CBG price, capital assistance, pipeline support, credit guarantee and ecosystem funding for the Compressed Biogas sector.

What is the Administered CBG Price?

An initial price of ₹2,110 per MMBTU (approximately ₹98 per kg of CBG at 95% methane, excluding applicable taxes and compression charges), paid by GAIL (India) Limited as Synchro Operator, and in place until at least 31 March 2036. The Project Approval Board may revise it annually or as deemed necessary; there is no indexation formula.

How much capital assistance is available?

₹1.25 crore per TPD for greenfield plants (50% of that rate for incremental brownfield capacity; ₹0.60 crore per TPD, max ₹5 crore, for upgrading an own biogas plant), with a 20% uplift in special category areas, plus 50% machinery reimbursement up to ₹0.75 crore per TPD. The maximum is ₹30 crore per project. Release is 25% at CTE/PESO approval, 25% at first sale and 50% after performance testing, graded on Plant Load Factor.

Which projects are not eligible?

Projects with 50% or more municipal solid waste or sewage feedstock, projects on predominantly liquid or gaseous feedstock, projects that only purify, upgrade, compress or bottle biogas bought from third parties, and projects that have received capital support under another Central Government scheme.

What happens to SATAT?

SATAT, the DoF Market Development Assistance, MNRE's Waste to Energy CFA, Biomass Aggregation Machinery and Development of Pipeline Infrastructure are subsumed under GOBARdhan from 1 September 2026. Liabilities already committed under them continue with the original administering ministry.

How does the credit guarantee work?

The Credit Guarantee Scheme for CBG (CGSCBG), managed by NCGTC, covers 85% of the loan amount for eligible greenfield MSME projects, up to ₹20 crore (₹25 crore for women-led MSMEs), with no collateral on the guaranteed portion. Loan tenor is up to 15 years including an 18-month moratorium. Applications are made through the Jan Samarth portal until 31 December 2030 or until loans of ₹15,000 crore are issued.

What compliance systems must a plant have?

Real-time SCADA at the purification outlet, cascade filling point and/or custody transfer point; an online gas chromatograph or mass spectrometer; an automatic interlock and shut-off system; and geo-tagged photographs uploaded on the GOBARdhan portal. A SCADA fault unrectified for more than seven days allows the Synchro Operator to withdraw the price benefit until rectification.

Can MITCON prepare the DPR and build the plant?

Yes. MITCON prepares bankable DPRs in the prescribed Appendix-II format, supports scheme filings and financing, and offers EPC and PMC services for CBG plants, so feedstock, design, compliance and construction sit with one team.

Talk to MITCON's Biofuel & Green Chemistry team

Request a GOBARdhan Readiness Check for your CBG project: eligibility mapping across all six components, feedstock and offtake position, and a grant, price and financing view before you commit capital.

MITCON Consultancy & Engineering Services Ltd · Kubera Chambers, Shivajinagar, Pune 411 005, Maharashtra

Source: Ministry of Petroleum and Natural Gas, Office Memorandum F. No. L-16022/9/2025-GP-I-Part(1) (E:57024) dated 15 September 2026, enclosing component-wise Operational Guidelines under the GOBARdhan Scheme (Components I to VI). The scheme was approved on 6 August 2026. Disclaimer: this page is a summary for information only. It is not legal, financial or investment advice and is not a substitute for the notified guidelines. MoPNG has reserved the right to modify the provisions, and several operational details (SCADA specifications, cost norms, the standard Tripartite Agreement, NCGTC procedures) are to be published on the GOBARdhan portal and NCGTC website. Verify against the current official documents before any application, contract or investment decision.