
Syllabus: GS3/ Environment/ Energy
Context
- The GOBARdhan scheme approved to strengthen India’s domestic bioenergy production also raises questions about the challenges of converting India’s abundant organic waste into a reliable source of domestic energy.
Background
- India currently meets nearly 50 per cent of its natural gas requirement through imports, making energy security a strategic priority.
- Recent geopolitical developments and disruptions along the Strait of Hormuz, a route that carries nearly 55 to 60 per cent of India’s Liquefied Natural Gas (LNG) imports, underscoring the importance of strengthening domestic energy production.
- Hence, the Union Cabinet approved GOBARdhan, the National Circular Bioenergy Scheme.
Galvanizing Organic Bio-Agro Resources Dhan (GOBARdhan)
- GOBARdhan was originally launched under the Swachh Bharat Mission (Grameen) in 2018 as an integral component of Solid and Liquid Waste Management (SWM).
- It aims to convert bio-waste – animal waste, kitchen leftovers, crop residue and market waste – into biogas and bio-slurry, thereby ensuring cleanliness in villages and improving rural life.
- Earlier, the Compressed Biogas (CBG) ecosystem was spread across four different ministries.
- In 2026, to ensure better coordination, the government has consolidated the entire scheme under the Ministry of Petroleum and Natural Gas.
- Implementation Period: FY 2026-27 to FY 2035-36.
- Total Outlay: ₹23,731 crore.
- Expected Outcomes Over a Decade:
- Reduced import dependence will save over ₹40,000 crore in forex.
- Clean, homegrown gas will displace 10 MMT of fossil fuel use.
- This industry will add more than ₹75,000 crore to national GDP.
- Diverting waste from landfills will cut more than 40 MT of CO₂ emissions.
- Production of 250 MMT of organic fertiliser.
Six Growth Engines under GOBARdhan
- Assured CBG Offtake: GOBARdhan establishes a dedicated CBG Offtake Assurance framework to provide a reliable and predictable market for producers. Procurement by City Gas Distribution (CGD) entities will support achievement of the notified CBG Obligation trajectory:
- 3% in FY 2026-27
- 4% in FY 2027-28
- 5% from FY 2028-29 onwards in CNG (Transport) and PNG (Domestic) segments.
- Stable CBG Pricing Framework: GOBARdhan introduces a government-backed administered price of ₹2,110 per Metric Million British Thermal Unit (MMBTU), equivalent to ₹105 per kilogram of CBG, ensuring stable and remunerative pricing.
- Capital Assistance: Eligible greenfield CBG projects will receive capital assistance of up to ₹2 crore per tonne per day (TPD) of installed CBG capacity.
- Development of Pipeline Infrastructure: The scheme supports both cluster-based and standalone pipeline infrastructure connecting CBG plants with trunk pipelines and city gas distribution networks.
- Credit Guarantee Support: The mechanism will provide credit guarantee coverage of up to 85 per cent on eligible loans for such projects.
- CBG Ecosystem Challenge Fund: GOBARdhan establishes a dedicated CBG Ecosystem Challenge Fund to accelerate district-level implementation and strengthen local value chains across the CBG ecosystem.
Key Issues to Examine
- Fragmented feedstock supply: Agricultural residues and cattle dung are dispersed across numerous small farms, making aggregation difficult and increasing procurement costs.
- Seasonal availability and storage: Crop residues are generated during specific harvesting periods, requiring storage infrastructure to ensure a continuous supply throughout the year.
- High transportation costs: Biomass has relatively low energy density, making long-distance transportation expensive and potentially reducing plant profitability.
- Regional disparities: Areas with established dairy cooperatives, organised agricultural networks and better mechanisation may attract more investment than regions with fragmented landholdings and weaker logistics.
- Plant viability: Biogas and CBG plants require reliable feedstock supplies, suitable technology and regular maintenance.
- Financial challenges: High initial investment, operating costs and uncertain market returns can affect project viability.
Significance of GOBARdhan
- Energy security: Domestic biogas and CBG production can reduce dependence on imported fossil fuels.
- Environmental benefits: Proper treatment of organic waste can reduce uncontrolled waste decomposition and associated pollution.
- Rural economy: Waste-to-energy plants can create local employment and provide additional income opportunities for farmers.
- Agriculture: Digestate, the material left after anaerobic digestion, can be used as an organic soil amendment.
- Circular economy: The scheme links waste management, clean energy and resource recovery.
Way Forward
- Improve local collection and segregation systems for organic waste.
- Strengthen financial support, technology access and maintenance capacity.
- Establish reliable purchase arrangements and transport infrastructure for biogas and CBG.
- Promote coordination among local bodies, farmers, cooperatives and private operators.
- Monitor plant performance, energy output and environmental outcomes rather than relying only on the number of plants established.
| Daily Mains Practice Question [Q] Examine the role of the GOBARdhan scheme in enhancing India’s energy security, managing organic waste and strengthening rural livelihoods. Discuss the challenges associated with its implementation. |
Source: BL
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