Industry Odisha Bureau, Sep 27: The Indian Biogas Association expects a ₹2,800 crore investment pipeline in compressed biogas. GOBARdhan offers pricing, offtake and capital support. The harder task is turning pipelines into operating plants.
India’s bioenergy sector is drawing fresh investment interest. The Indian Biogas Association (IBA) expects a pipeline exceeding ₹2,800 crore. It links that interest to Renewable Energy India Expo 2026, due next month.
The figure is potential investment, not money already spent. The IBA says it equals nearly 12% of GOBARdhan’s ₹23,731 crore outlay. The Union Cabinet approved the scheme in August 2026. It took effect on September 1 and runs until 2035-36.
Building a bankable CBG market
Compressed biogas (CBG) plants have long faced one core question. Who buys the gas, and at what price? The GOBARdhan scheme attempts to answer both.
It sets an administered CBG price of ₹2,110 per MMBtu. That offers pricing visibility, though not guaranteed profit. Greenfield plants can receive capital assistance of up to ₹2 crore per TPD. TPD means tonnes per day.
The scheme also supports pipeline infrastructure and credit guarantees. Together, these measures target the risks lenders typically scrutinise. They reduce uncertainty, but do not eliminate project risk.
Offtake matters as much as output
Production capacity means little without reliable buyers. GOBARdhan mandates assured offtake in the CNG and PNG segments. That longer-term demand visibility can support project planning.
IBA Chairman Gaurav Kedia said pricing, capital and offtake support addressed the sector’s biggest blockers. Still, policy-supported offtake is not risk-free revenue. Individual plants must still perform.
From pipeline to operating plants
An investment pipeline is only an early signal. Projects must first secure financing. They must then complete construction and commissioning. Only then does production begin. Not every announced project reaches that stage.
Kedia said India could generate over 62 million tonnes of CBG annually. That is the IBA’s estimate of potential, not current output. The association also sees scope to cut fuel imports and create jobs. Those remain potential benefits, not measured results.
Technology meets infrastructure
Renewable Energy India Expo runs from October 22 to 24 in Greater Noida. Its Bio-Energy Pavilion will feature waste-to-energy and CBG technologies. Co-digestion models and digital monitoring solutions will also be on show.
The IBA says exhibitors are up 35% on 2025. That signals participation, not market growth. The wider expo expects over 70,000 participants across solar, wind, hydrogen and storage.
Technology availability helps. Viability still depends on feedstock, capital, infrastructure and dependable buyers.
The tenfold test
GOBARdhan aims to lift domestic CBG production nearly tenfold by 2035-36. That remains an ambition, not an outcome.
Policy has now addressed pricing, demand visibility and early capital. The next test lies in execution. Plants must run reliably and sell gas consistently over many years.
