GOBARdhan scheme can cut gas import bill by $5 billion: IBA

The Centre’s Rs 23,731-crore GOBARdhan scheme could help India reduce its natural gas import bill by around USD 5 billion, says the Indian Biogas Association (IBA). IBA has described GOBARdhan as a strategic investment in the country’s energy, agriculture and rural economy.

The GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) scheme aims to convert organic waste, including agricultural residues and cattle dung, into compressed biogas (CBG), bioenergy and organic fertilisers.

IBA said the biggest economic benefit could come from reducing India’s dependence on imported natural gas. With the country importing around half of its natural gas requirements, the association estimates that 1,500 fully operational CBG plants could reduce the natural gas import deficit by about one-third, equivalent to nearly $5 billion.

IBA noted that India’s LNG import bill stood at around USD 15.2 billion in FY25, highlighting the potential for domestic biogas and CBG production to strengthen energy security and reduce exposure to global price and geopolitical risks.

GOBARdhan could also help lower fertiliser imports and the government’s subsidy burden. CBG plants produce fermented organic manure (FOM) and liquid bio-slurry, which can supplement chemical fertilisers and improve soil health. IBA estimates that 1,500 CBG plants, combined with better agricultural practices, could reduce fertiliser imports by around 5%, potentially saving about USD 1 billion.

Beyond import substitution, IBA highlighted the scheme’s potential to create rural employment and turn agricultural residues into income-generating resources for farmers. Increased use of crop waste for CBG production could also discourage stubble burning, helping reduce air pollution, particularly in the National Capital Region.

IBA held that GOBARdhan can therefore deliver economic, environmental and social benefits while accelerating India’s transition towards a circular bioenergy economy.