IBA hopeful of Rs 5,000 crore investment in biogas sector in 2026–27

India’s biogas sector is poised for a major investment surge, with inflows expected to exceed Rs 5,000 crore in 2026–27, driven by growing investor confidence and strong stakeholder interest, according to the Indian Biogas Association (IBA). The association noted that 2025 has already seen heightened momentum, reflected in an expanding pipeline of compressed biogas (CBG) projects across the country.

More than 100 CBG plants have been commissioned to date, signalling the sector’s transition from pilot initiatives to commercial-scale deployment. Government data further underscores this progress: during FY 2024–25, 94 operational CBG plants sold over 31,400 tonnes of compressed biogas, providing clear evidence of rising market uptake and operational viability. The IBA said this performance highlights the sector’s growing role in India’s clean energy and circular economy ambitions.

Beyond large plants, the association pointed to significant opportunities to improve efficiency and capacity utilisation in the country’s millions of small, traditional biogas digesters. At the same time, national programmes are increasingly supporting medium-scale biogas facilities, which deliver multiple co-benefits including cleaner cooking fuel, rural employment generation and the production of organic manure for agriculture.

Looking ahead, the IBA expects a wave of new CBG commissioning, supported by more organised feedstock supply chains and the emergence of unified, integrated policy frameworks to accelerate adoption. Policy clarity, the association said, will be crucial in reducing risks and attracting long-term capital.

IBA Chairman Gaurav Kedia “The relaxed GST regime is going to augur ease of doing business in the CBG ecosystem. We anticipate that a reduction of 7% in the applicable GST rate for CBG sector shall significantly improve project viability, and the direct impact would translate into 4–5% increase in new investments in the industry over the short to medium term.”

Gaurav Kedia added that the CBG industry could reach a market size of $3–4 billion by 2026 and expand to around $5 billion by 2030. The IBA is India’s largest national body representing biogas stakeholders, including technology providers, developers, operators, policymakers and researchers.