Government Backing for Your CBG Investment
Leverage the new ₹23,731 Crore GOBARdhan Central Sector Scheme with guaranteed ₹2,110/MMBtu pricing, up to ₹2 Cr/TPD capital assistance, pipeline connectivity grants, and SATAT long-term offtake security.
Central Sector Scheme “GOBARdhan”
₹23,731 Crore Central Outlay
Approved by the Government of India for FY 2026–27 to FY 2035–36. A 10-year master framework providing assured gas offtake, ₹2,110/MMBtu stable pricing, up to ₹2 Cr/TPD direct capital assistance, pipeline grants, and credit guarantees.
The 6 Strategic Pillars of the Scheme
Replacing earlier fragmented subsidies with a unified statutory support framework
CBG Offtake Assurance
Statutory offtake mandate on City Gas Distribution (CGD) networks & OMCs to blend 3% (FY 2026-27), 4% (FY 2027-28), and 5% (FY 2028-29 onwards) in CNG (T) & PNG (D).
Affordability & Pricing
Administered CBG Price (ACP) fixed at ₹2,110/MMBtu for minimum 10 years, backed by up to ₹10/kg government affordability support to ensure guaranteed, timely payments.
Capital Assistance (Capex)
Direct grant: ₹1.25 Cr/TPD for plant machinery + ₹0.75 Cr/TPD for feedstock & FOM equipment (+20% bonus in Uttarakhand, HP, NE, and J&K Special Category regions).
Pipeline Infrastructure
80% capital cost support for cluster pipeline grids (up to 75 km) connecting into trunk pipelines; 50% capital cost assistance for standalone connections to CGD retail networks.
Credit Guarantee Support
De-risking institutional debt for MSME developers: covers up to 85% of outstanding defaults (capped at ₹20 Cr for MSMEs and ₹25 Cr for women-led enterprises).
Challenge Fund & FOM Offtake
Fertilizer Marketing Companies mandated to purchase 20%–50% of Fermented Organic Manure (FOM). Authorization letter exemption extended up to FY 2035-36.
Estimate Your Project's GOBARdhan Subsidy
The SATAT Scheme Explained
Sustainable Alternative Towards Affordable Transportation (SATAT) is the Ministry of Petroleum & Natural Gas initiative targeting 5,000+ CBG plants nationally.
Assured Offtake via LOI
The SATAT scheme mitigates market risk by offering a guaranteed purchase mechanism. Developers receive a Letter of Intent (LOI) from major Oil Marketing Companies (OMCs) ensuring that 100% of their CBG production is purchased at fixed, indexed prices for long-term viability.
OMC Partners
Backed by India's largest petroleum networks including IOC, BPCL, HPCL, GAIL, ATGL, and GGL.
Long-Term Contracts
Secure commercial agreements spanning 10 to 15 years, providing bankable financial security.
Fixed Indexed Pricing
Transparent pricing structure shielded from crude oil market volatility, ensuring stable cash flows.
Priority Project Support
SATAT registered projects receive expedited clearances and priority support from state nodal agencies.
MNRE Central Financial Assistance (CFA)
Direct financial subsidies under the National Bioenergy Programme to lower your initial CAPEX.
New CBG Plants
Per 4,800 kg/day capacity
Smaller Plants
Per 2,400 kg/day capacity
Existing Conversions
Per 4,800 kg/day capacity
Maximum Subsidy Cap
The total MNRE CFA is capped at ₹10 Crore per individual project.
Worked Example: 10 TPD Plant
A 10 TPD (10,000 kg/day) CBG plant generates roughly double the 4,800 kg baseline. Under the CFA, this project would be eligible for ₹8 to ₹10 Crore in total direct subsidy.
Additional Ecosystem Support
GOBARdhan Scheme Integration
Additional support under the Galvanizing Organic Bio-Agro Resources Dhan scheme for rural sanitation and waste-to-wealth projects.
Viability Gap Funding (VGF)
Eligible projects can tap into state-specific VGF mechanisms to bridge commercial shortfalls, especially for municipal waste-based and large-scale projects.
Priority Sector Lending
CBG is classified under Priority Sector Lending (PSL) by the RBI, unlocking favorable loan terms up to ₹50-100 Crore.
Carbon Credits & ESG
Generate verifiable carbon credits and fulfill corporate ESG mandates through green energy production — eligible for green finance.
State Government Support
Land support & leasing, electricity subsidies, single-window clearance, and state-level incentives (varies by state).
Tax & Policy Benefits
GST benefits on equipment, faster environmental clearances, and agriculture/rural incentives for crop residue utilization.
Feedstock & Machinery Subsidy
Government support for biomass collection equipment — balers, trolleys, and handling systems to streamline supply chains.
Small & Medium Biogas Subsidy
₹9,800 to ₹70,000 per smaller plant (size dependent), with additional incentives for SC/ST communities and toilet-linked plants.
The 20% Regional Bonus
Projects located in North-East states, registered hilly regions, or integrated with Gaushalas are eligible for an extra 20% incentive on top of the base MNRE CFA amount.
Not sure which subsidy applies to your project?
Every project is unique. Let our experts evaluate your feedstock, capacity, and location to build a customized financial and technical roadmap.