The Cabinet approved a Rs 23,731-crore GOBARdhan compressed-biogas scheme on August 6, 2026, covering 2026-27 to 2035-36. Its components include capital support, pricing arrangements, pipelines, credit support and local supply-chain development.
The design addresses more than the digestion plant. Agricultural residue or other organic material must first be collected and supplied; the resulting gas then needs treatment and a route to a buyer.
The US Environmental Protection Agency explains the underlying process: microorganisms break down organic material without oxygen, producing biogas and a residual material called digestate. Raw biogas contains methane alongside carbon dioxide, moisture and other constituents.
Removing unwanted constituents produces a more usable gas that can enter distribution systems or be compressed as vehicle fuel. Digestate has its own handling and treatment requirements, so it is not simply an unwanted remainder of fuel production.
That chain explains the scheme's support for feedstock aggregation, manure processing and gas connections. Funding only the core reactor would leave other stages unresolved. The Cabinet's integrated approach targets those linked stages; project-specific eligibility and payments still depend on the applicable scheme documents.
