Centre mulls new scheme to boost CBG production

The Government of India is preparing to introduce a comprehensive policy aimed at boosting compressed biogas (CBG) production and reducing the country’s dependence on imported natural gas, which currently accounts for nearly half of domestic consumption.

Over the past two financial years, India has spent more than $28.5 billion on natural gas imports, underscoring the urgency of enhancing domestic alternatives.

As part of the proposed framework, states will receive financial incentives through the Special Assistance to States for Capital Investment (SASCI) scheme. This initiative provides 50-year interest-free loans to support capital investments and policy interventions related to CBG development, according to Alok Tripathi, Joint Secretary in the Ministry of Petroleum and Natural Gas.

The GOBARdhan scheme, launched in 2018 under the Swachh Bharat Mission, will serve as the foundation of this integrated approach. It aims to convert organic waste such as cattle dung, agricultural residue, and kitchen waste into biogas and bio-slurry, promoting clean energy and rural sustainability. Despite its ambitious target of producing 15 million tonnes of CBG, progress has been limited.

The government has also exempted CBG blended with CNG from excise duty to stimulate demand and improve market viability.

 The government informed last December that India added significant bioenergy capacity over the last ten years, installing 2,361 MW of biomass-based power, 228 MW of waste-to-energy capacity and around 2.88 lakh biogas plants across the country. The current National Bioenergy Programme Phase-I aims to further accelerate the deployment of biogas, biomass, and waste-to-energy projects, strengthening India’s clean energy transition while promoting sustainable waste management and rural livelihoods.