GOBARdhan Scheme Guidelines: Overview
The GOBARdhan scheme, with a budget allocation of ₹23,731 crore, aims to boost India's compressed biogas (CBG) sector. It is designed to convert farm refuse and municipal waste into clean fuel and organic manure, leveraging agricultural residue, cattle dung, and other biomass resources.
Key Features of the Scheme
- The scheme ensures full offtake of up to 100% of CBG available for sale, subject to technical and operational feasibility.
- Introduces a mandatory CBG obligation for city gas distribution (CGD) companies supplying gas to CNG and domestic PNG segments:
- 3% by FY27
- 4% by FY28
- 5% from FY29 onwards
- Establishes a pricing mechanism with an initial Administered CBG Price (ACP) of ₹2,110 per MBTU (~₹98 per kg of CBG at 95% methane content), valid for a minimum of 10 years, until March 31, 2036.
- Offers CBG affordability support to the Synchro Operator, capped at ₹10 per kg, for a decade to bridge affordability gaps.
Obligations and Support
- No take-or-pay obligation for CGD entities in the first year. From the second year, a take-or-pay obligation of up to 90% of the annual nominated quantity is imposed.
- CBG producers will have a supply-or-pay obligation of up to 50% of annual contracted quantity from the second year.
Financial Assistance for CBG Plants
- New CBG plants receive financial assistance of ₹1.25 crore per tonne per day (TPD) of eligible CBG capacity, capped at ₹30 crore per project.
- Existing biogas plants upgraded to produce CBG can receive ₹0.60 crore per TPD, with a cap of ₹5 crore per project.
Technical and Monitoring Requirements
- Real-time monitoring and online gas-quality measurement are mandated.
- Automatic shut-off systems are required for beneficiaries, ensuring quality and safety compliance.
