The Union Cabinet has approved Galvanizing Organic Bio-Agro Resources Dhan (GOBARdhan) scheme for the National Circular Bioenergy Scheme, with a total outlay of Rs 237.31 billion. It will transfer agricultural residue, cattle dung, press mud, municipal organic waste, and other biomass resources into clean fuel, organic manure, rural income, and national economic value.

The Scheme is likely to be implemented by Ministry of Petroleum and Natural Gas (MoPNG) from FY 2026-27 to FY 2035-36. It aims to increase nearly ten-fold domestic Compressed Bio Gas (CBG) production 

MoPNG is implementing the Biomass Aggregation Machinery (BAM) Scheme to support Compressed Biogas producers in procuring biomass aggregation equipment with total outlay of Rs 5.64 billion. As on 16 March 2026, 37 proposals have been approved, with financial assistance of nearly Rs 2.48 billion. It is also implementing Development of Pipeline Infrastructure (DPI) Scheme with a total outlay of Rs 9.94 billion for the period FY 2024-25 to FY 2028-29. So far, Rs 0.56 billion has been sanctioned under the scheme. 

Government of India has systematically built the foundations of the CBG sector through the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative, the Market Development Assistance (MDA) Scheme for organic manure, BAM Scheme (DPI) Scheme and Central Financial Assistance (CFA) for CBG plants under the National Bioenergy Programme, which has enabled commissioning of about 200 CBG plants.