SECI Announces Winners of 6 GWh Peak Power Supply Auction

IREDA’s Q1 Revenue Up 15% on Higher Loan Interest Accruals

ABRen Secures $1.6 Billion from MUFG to Fund Sprng Energy Acquisition

Coal India Seeks ₹7 Billion Term Loan for 750 MWh Battery Storage Project

GMIDC Tenders 150 MW Floating Solar Plus 150 MWh Battery Storage Project

GAIL Invites Bids to Augment 5 MW Solar Project in Rajasthan

PFC Consulting Awards Project to Evacuate 14 GW of Renewables in Gujarat

PFC Consulting Tenders Transmission Project for 400 kV Substation in Rajasthan

Grid India Issues New Procedure for Secure Operation of National Grid

Madhya Pradesh Lays Out Banking SOP for Green Energy Open Access Consumers


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2026/08/amazon_polly_102656.mp3?version=1786021343">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The Union Cabinet has approved GOBARdhan, the National Circular Bioenergy program, with an outlay of ₹237.31 billion (~$2.5 billion) to expand compressed biogas production in India.</p>
<p>The program will run from the financial year (FY) 2026-27 through FY 2035-36 and will be administered by the <a href="https://mopng.gov.in/en" target="_blank" rel="noopener">Ministry of Petroleum and Natural Gas.</a></p>
<p>GOBARdhan will consolidate existing government support measures for compressed biogas into a national framework covering offtake, pricing, capital assistance, pipeline infrastructure, credit guarantees, and technology development.</p>
<p>The government expects the program to increase domestic compressed biogas production tenfold.</p>
<p>It also aims to attract private investment and support the use of agricultural residue, cattle dung, press mud, municipal organic waste, and other biomass resources as feedstock.</p>
<p>Compressed biogas is chemically equivalent to natural gas and can be supplied through existing gas infrastructure, according to the government. The fuel can be used in transport, households, industrial facilities, and commercial establishments.</p>
<p>The program builds on measures including the Sustainable Alternative Towards Affordable Transportation initiative, the Market Development Assistance program for organic manure, the Biomass Aggregation Machinery program, the Development of Pipeline Infrastructure program, and Central Financial Assistance for compressed biogas plants under the National Bioenergy Program.</p>
<p>The government said these initiatives have supported the commissioning of more than 200 compressed biogas plants.</p>
<p><strong>Six Components </strong></p>
<p>Under the first component, city gas distribution companies will procure compressed biogas to meet the notified blending obligation. The <a href="https://www.mercomindia.com/government-mandates-biogas-in-cng-and-png" target="_blank" rel="noopener">obligation</a> is set at 3% in FY 2026-27, 4% in FY 2027-28, and 5% from FY 2028-29 for compressed natural gas used in transport and piped natural gas supplied to households.</p>
<p>The second component introduces an administered compressed biogas price of ₹2,110 (~$22.20) per metric million British thermal units. The pricing framework will have a minimum term of 10 years and will combine government support with a market-based cost-sharing mechanism.</p>
<p>Under the third component, eligible greenfield projects will receive capital assistance of up to ₹20 million (~$210,400) per ton per day of installed compressed biogas capacity. Brownfield projects that expand production capacity will also qualify for assistance. The capital support will cover plant, machinery, and infrastructure for feedstock aggregation, organic manure processing, and value addition.</p>
<p>Under the fourth component, the program will support cluster-based and standalone pipelines connecting compressed biogas plants to trunk pipelines and city gas distribution networks.</p>
<p>The fifth component introduces a credit guarantee mechanism, which will support eligible micro, small, and medium enterprise projects by sharing part of the lending risk. The government said the mechanism is intended to improve access to institutional finance and reduce collateral requirements.</p>
<p>Under the sixth component, the program will also establish a Compressed Biogas Ecosystem Challenge Fund. The fund will support feedstock assessments, resource mapping, aggregation infrastructure, district-level planning, technology adoption, process improvements, organic manure value addition, capacity building, and stakeholder awareness.</p>
<p>Last July, the Ministry of Petroleum and Natural Gas <a href="https://www.mercomindia.com/petroleum-ministry-amends-subsidy-terms-for-compressed-biogas-machinery" target="_blank" rel="noopener">amended</a> the disbursal pattern of financial assistance for compressed biogas projects to procure biomass aggregation machinery. Compressed biogas projects that utilize more than 50% biomass as feedstock and have a 2-ton-per-day capacity are eligible for financial support of ₹9 million (~$94,639).</p>


Cabinet Approves ₹237 Billion National Compressed Biogas Program


					<table id="amazon-polly-audio-table">
						<tr>
						<td id="amazon-polly-audio-tab">
							<div id="amazon-ai-player-label">Listen to this article</div>
							<div id="amazon-ai-player-container">
			<audio class="amazon-ai-player" id="amazon-ai-player" preload="none" controls   controlsList="nodownload" >
				<source type="audio/mpeg" src="https://cms.mercomindia.com/wp-content/uploads/2025/07/amazon_polly_81801.mp3?version=1779946443">
			</audio>
		</div>
							<div id="amazon-polly-subscribe-tab"></div>
							<div id="amazon-polly-by-tab"></div>
						</td>
						</tr>
					</table><p>The <a href="https://mopng.gov.in/en" target="_blank" rel="noopener">Ministry of Petroleum and Natural Gas</a> has amended the disbursal pattern of financial assistance for compressed biogas (CBG) projects to procure biomass aggregation machinery.</p>
<p>According to the amendments, CBG plants utilizing more than 50% biomass as feedstock for a 2 tons per day (TPD) capacity project are eligible for a financial support of ₹9 million (~$104,970).</p>
<p>All existing and upcoming CBG projects must use at least 50% or a minimum of 3,000 MT of biomass as feedstock annually to avail of the subsidy.</p>
<p>CBG plants utilizing less than 50% biomass as feedstock, but more than 3,000 MT of biomass annually, can receive financial support of ₹9 million (~$104,970) per 3,000 MT of agri-residue requirement.</p>
<p>The Ministry provides financial assistance for a maximum of 50% of the procurement cost of a biomass aggregation machine, up to ₹9 million (~$104,970) per project, whichever is lesser.</p>
<p>The CBG project must have installed or proposed CBG production capacity of at least 2 TPD.</p>
<p>To be eligible for a subsidy, the CBG projects under construction must have achieved at least 25% of their progression. However, at least 50% of the project must be completed before financial assistance is disbursed.</p>
<p>The CBG projects must not have availed of any financial assistance under any other government or state program.</p>
<p>The amendments also state that when applying for financial assistance, CBG producers must specify whether the machinery or equipment is proportional to the collected biomass. They must also list the available machinery and equipment.</p>
<p>After the application for financial assistance is approved, CBG producers can avail of 10% of the financial assistance as a mobilization advance, provided an equivalent bank guarantee is provided. The bank guarantee must be valid for a year. However, the financial aid will be extended per the project management agency’s requirements.</p>
<p>The bank guarantee will be forfeited if the project developers fail to comply with the program guidelines during the project’s execution.</p>
<p>CBG producers can apply for the financial assistance release in a phased manner within two years of receiving approval for their aid application.</p>
<p>Recently, the Ministry of New and Renewable Energy <a href="https://www.mercomindia.com/mnre-introduces-iot-based-monitoring-of-data-under-biomass-energy-program" target="_blank" rel="noopener">revised</a> the guidelines for the National Biomass Program for the financial years 2022 to 2027 (Phase-I). These amendments aim to promote cleaner energy solutions, ease of doing business, and accelerate the adoption of biomass technologies across India.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


Petroleum Ministry Amends Subsidy Terms for Compressed Biogas Machinery

ministry-of-petroleum

Get the most relevant India solar and clean energy news.

RECENT POSTS