Industrial Promotion Policy 2025 & MSME Development Policy 2025 · Effective 24 Feb 2025
GOBARdhan Scheme CBG Plant Subsidy Advisory
GOBARdhan is the Central Sector Scheme for the Compressed Biogas (CBG) sector. A greenfield CBG plant gets ₹1.25 crore per TPD of capital assistance, plus support for feedstock and manure machinery, an assured price of ₹2,110 per MMBtu and firm offtake. Bizastra handles portal registration, eligible-cost structuring, claims and disbursement. It is one of the central government schemes BizAstra advises on, alongside ECMS, the RDI Fund and Semicon 2.0 (ISM 2.0).
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Capital assistance per TPD (greenfield)
Per MMBtu assured CBG price
Offtake at producer's option
Credit guarantee (greenfield MSMEs)
Overview
What Is the GOBARdhan Scheme?
GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) is a Central Sector Scheme for the development of the Compressed Biogas (CBG) sector. It is effective from 1 September 2026 and runs from FY 2026-27 to FY 2035-36. It is open to CBG plants of all sizes: greenfield plants, and brownfield plants for additional CBG capacity only, registered on the GOBARdhan portal with a valid Plant ID. The scheme combines up-front capital support with long-term revenue certainty through an administered price and assured offtake.
| Particular | Details |
|---|---|
| Name of the scheme | Central Sector Scheme "GOBARdhan" (Galvanizing Organic Bio-Agro Resources Dhan) for development of the Compressed Biogas (CBG) sector |
| Effective from | 1 September 2026 |
| Scheme period | FY 2026-27 to FY 2035-36 |
| Eligible units | CBG plants of all sizes; greenfield, and brownfield for additional CBG capacity only, registered on the GOBARdhan portal with a valid Plant ID |
| Years of benefits | Administered CBG Price and Affordability Support: 10 years (FY 2026-27 to FY 2035-36). Capital Assistance, Pipeline, Credit Guarantee and Ecosystem Fund support: 5 years (up to FY 2030-31) |
| Policy / Scheme | Benefit | Applicability |
|---|---|---|
| Industrial Promotion Policy (2025) | Up to 40%–60% Capital Subsidy on FCI | Large & Mega Units; Expansion, Diversification, Technology Upgradation |
| MSME Development Policy (2025) | 40%–60% subsidy for MSME units in thrust sectors | Food, Pharma, Textile, Apparel, Medical Devices |
| MP Logistics Policy (2025) | Up to 30% of investment, maximum ₹5–75 crore depending on project size. | New logistics & warehousing projects in MP with investment ≥ ₹125 crore, for non-agricultural / industrial goods. |
| MP Export Promotion Policy (2025) | 5% interest subsidy, 50% freight & documentation support, 25% infrastructure aid, ₹10 L RCMC, 10% export incentive. | Large Manufacturing Industries exporting over 25% of their production from Madhya Pradesh. |
| IT, ITeS & ESDM Promotion Policy (2023) | CAPEX Assistance 25%–40% (+2% for women entrepreneurs) | IT/ITeS, ESDM units (new and expansion) |
| Tourism Policy (2024) | 15%–40% capital subsidy & grants | Hotels, Resorts, Heritage Units, Ropeways, Cruises |
The Benefits
GOBARdhan Benefits at a Glance
The scheme supports a CBG project at every stage: building the plant, connecting it to the gas grid, financing it, and selling the gas and its by-products.
| Benefit | What you get |
|---|---|
| Assured offtake | Firm offtake of up to 100% of CBG at the producer's option, under a Tripartite Agreement with the CGD entity and GAIL |
| Administered CBG Price (ACP) | ₹2,110 per MMBtu (approx. ₹98 per kg), excluding taxes and compression charges, for a minimum of 10 years (till 31 March 2036) |
| Capital assistance: CBG plant | ₹1.25 crore per TPD (greenfield); 50% of this rate for brownfield additional capacity; additional 20% in Special Category Areas |
| Capital assistance: feedstock and manure machinery | 50% of actual eligible cost, up to ₹0.75 crore per TPD; overall cap of ₹30 crore per project |
| Credit guarantee | Cover of up to 85% of the loan, max ₹20 crore per project (₹25 crore for women-led MSMEs), for greenfield MSME projects |
| CGD network pipeline connectivity | 50% of eligible cost for pipelines up to 75 km, capped at ₹50 lakh per km (steel) / ₹7.5 lakh per km (MDPE) |
| Trunk pipeline cluster connectivity | 80% of eligible capital cost (per the Office Memorandum) for up to 75 weighted km per plant, developed by GAIL as Cluster Operator |
| CBG Ecosystem Challenge Fund | District awards of ₹5 crore (top 3) and ₹2 crore (next 7), and grants of up to 50% of project cost for ecosystem projects |
| By-product (FOM) support | Fertilizer Marketing Companies to procure FOM from GOBARdhan plants in a graded manner, rising from 20% to 50% |
| Policy / Scheme | Benefit | Applicability |
|---|---|---|
| Industrial Promotion Policy (2025) | Up to 40%–60% Capital Subsidy on FCI | Large & Mega Units; Expansion, Diversification, Technology Upgradation |
| MSME Development Policy (2025) | 40%–60% subsidy for MSME units in thrust sectors | Food, Pharma, Textile, Apparel, Medical Devices |
| MP Logistics Policy (2025) | Up to 30% of investment, maximum ₹5–75 crore depending on project size. | New logistics & warehousing projects in MP with investment ≥ ₹125 crore, for non-agricultural / industrial goods. |
| MP Export Promotion Policy (2025) | 5% interest subsidy, 50% freight & documentation support, 25% infrastructure aid, ₹10 L RCMC, 10% export incentive. | Large Manufacturing Industries exporting over 25% of their production from Madhya Pradesh. |
| IT, ITeS & ESDM Promotion Policy (2023) | CAPEX Assistance 25%–40% (+2% for women entrepreneurs) | IT/ITeS, ESDM units (new and expansion) |
| Tourism Policy (2024) | 15%–40% capital subsidy & grants | Hotels, Resorts, Heritage Units, Ropeways, Cruises |
Capital Assistance
Capital Assistance for CBG Plants
Assistance for the CBG plant is linked to installed capacity in tonnes per day (TPD). Feedstock aggregation and organic manure machinery is reimbursed on actual cost.
| Plant type | Capital assistance for the CBG plant |
|---|---|
| Greenfield CBG plant | ₹1.25 crore per TPD of installed capacity |
| Brownfield (additional CBG capacity only) | 50% of the greenfield rate (i.e. ₹0.625 crore per TPD of additional capacity) |
| Special Category Areas | Additional 20% |
| Feedstock aggregation and organic manure (FOM / LFOM / PROM) machinery | 50% of actual eligible cost, up to ₹0.75 crore per TPD; overall cap of ₹30 crore per project |
| Policy / Scheme | Benefit | Applicability |
|---|---|---|
| Industrial Promotion Policy (2025) | Up to 40%–60% Capital Subsidy on FCI | Large & Mega Units; Expansion, Diversification, Technology Upgradation |
| MSME Development Policy (2025) | 40%–60% subsidy for MSME units in thrust sectors | Food, Pharma, Textile, Apparel, Medical Devices |
| MP Logistics Policy (2025) | Up to 30% of investment, maximum ₹5–75 crore depending on project size. | New logistics & warehousing projects in MP with investment ≥ ₹125 crore, for non-agricultural / industrial goods. |
| MP Export Promotion Policy (2025) | 5% interest subsidy, 50% freight & documentation support, 25% infrastructure aid, ₹10 L RCMC, 10% export incentive. | Large Manufacturing Industries exporting over 25% of their production from Madhya Pradesh. |
| IT, ITeS & ESDM Promotion Policy (2023) | CAPEX Assistance 25%–40% (+2% for women entrepreneurs) | IT/ITeS, ESDM units (new and expansion) |
| Tourism Policy (2024) | 15%–40% capital subsidy & grants | Hotels, Resorts, Heritage Units, Ropeways, Cruises |
Illustrative example: a 10 TPD greenfield CBG plant
| Item (illustrative 10 TPD greenfield plant) | Amount |
|---|---|
| Capital assistance for the CBG plant (10 TPD x Rs 1.25 crore) | ₹12.50 crore |
| Feedstock and manure machinery: actual eligible cost | ₹12.00 crore |
| Assistance at 50% (limit 10 TPD x Rs 0.75 crore = Rs 7.50 crore) | ₹6.00 crore |
| Total capital assistance (within the Rs 30 crore project cap) | ₹18.50 crore |
Illustrative figures only. Actual assistance depends on installed capacity, actual eligible cost, location (Special Category Areas get an additional 20%) and the scheme guidelines.
Capital assistance, pipeline support, the credit guarantee and the Ecosystem Fund are available for 5 years, up to FY 2030-31, so plants planned now should move quickly to register on the portal and secure a Plant ID.
| Policy / Scheme | Benefit | Applicability |
|---|---|---|
| Industrial Promotion Policy (2025) | Up to 40%–60% Capital Subsidy on FCI | Large & Mega Units; Expansion, Diversification, Technology Upgradation |
| MSME Development Policy (2025) | 40%–60% subsidy for MSME units in thrust sectors | Food, Pharma, Textile, Apparel, Medical Devices |
| MP Logistics Policy (2025) | Up to 30% of investment, maximum ₹5–75 crore depending on project size. | New logistics & warehousing projects in MP with investment ≥ ₹125 crore, for non-agricultural / industrial goods. |
| MP Export Promotion Policy (2025) | 5% interest subsidy, 50% freight & documentation support, 25% infrastructure aid, ₹10 L RCMC, 10% export incentive. | Large Manufacturing Industries exporting over 25% of their production from Madhya Pradesh. |
| IT, ITeS & ESDM Promotion Policy (2023) | CAPEX Assistance 25%–40% (+2% for women entrepreneurs) | IT/ITeS, ESDM units (new and expansion) |
| Tourism Policy (2024) | 15%–40% capital subsidy & grants | Hotels, Resorts, Heritage Units, Ropeways, Cruises |
Revenue Certainty
Administered CBG Price and Assured Offtake
Administered CBG Price
₹2,110 per MMBtu (approx. ₹98 per kg), excluding taxes and compression charges, for a minimum of 10 years, till 31 March 2036.
Assured offtake
Firm offtake of up to 100% of your CBG at your option, under a Tripartite Agreement with the CGD entity and GAIL.
By-product (FOM) support
Fertilizer Marketing Companies will procure FOM from GOBARdhan plants in a graded manner, rising from 20% to 50%.
CBG Obligation on CGD entities
| Financial year | CBG Obligation on CGD entities |
|---|---|
| FY 2026-27 | 3% |
| FY 2027-28 | 4% |
| FY 2028-29 onwards | 5% |
| Policy / Scheme | Benefit | Applicability |
|---|---|---|
| Industrial Promotion Policy (2025) | Up to 40%–60% Capital Subsidy on FCI | Large & Mega Units; Expansion, Diversification, Technology Upgradation |
| MSME Development Policy (2025) | 40%–60% subsidy for MSME units in thrust sectors | Food, Pharma, Textile, Apparel, Medical Devices |
| MP Logistics Policy (2025) | Up to 30% of investment, maximum ₹5–75 crore depending on project size. | New logistics & warehousing projects in MP with investment ≥ ₹125 crore, for non-agricultural / industrial goods. |
| MP Export Promotion Policy (2025) | 5% interest subsidy, 50% freight & documentation support, 25% infrastructure aid, ₹10 L RCMC, 10% export incentive. | Large Manufacturing Industries exporting over 25% of their production from Madhya Pradesh. |
| IT, ITeS & ESDM Promotion Policy (2023) | CAPEX Assistance 25%–40% (+2% for women entrepreneurs) | IT/ITeS, ESDM units (new and expansion) |
| Tourism Policy (2024) | 15%–40% capital subsidy & grants | Hotels, Resorts, Heritage Units, Ropeways, Cruises |
Grid Connectivity
Pipeline Connectivity Support
Eligible pipeline cost covers the pipeline, gas chromatograph / analysers, shut-off and isolation valves, and safety, metering and monitoring equipment, with a cost norm of ₹1 crore per km for steel and ₹0.15 crore per km for MDPE.
| Particular | CGD network pipeline connectivity | Trunk pipeline cluster connectivity |
|---|---|---|
| Support | 50% of eligible cost | 80% of eligible capital cost (per the Office Memorandum) |
| Length covered | Pipelines up to 75 km | Up to 75 weighted km per plant |
| Cap | ₹50 lakh per km (steel) / ₹7.5 lakh per km (MDPE) | Developed by GAIL as Cluster Operator |
| Policy / Scheme | Benefit | Applicability |
|---|---|---|
| Industrial Promotion Policy (2025) | Up to 40%–60% Capital Subsidy on FCI | Large & Mega Units; Expansion, Diversification, Technology Upgradation |
| MSME Development Policy (2025) | 40%–60% subsidy for MSME units in thrust sectors | Food, Pharma, Textile, Apparel, Medical Devices |
| MP Logistics Policy (2025) | Up to 30% of investment, maximum ₹5–75 crore depending on project size. | New logistics & warehousing projects in MP with investment ≥ ₹125 crore, for non-agricultural / industrial goods. |
| MP Export Promotion Policy (2025) | 5% interest subsidy, 50% freight & documentation support, 25% infrastructure aid, ₹10 L RCMC, 10% export incentive. | Large Manufacturing Industries exporting over 25% of their production from Madhya Pradesh. |
| IT, ITeS & ESDM Promotion Policy (2023) | CAPEX Assistance 25%–40% (+2% for women entrepreneurs) | IT/ITeS, ESDM units (new and expansion) |
| Tourism Policy (2024) | 15%–40% capital subsidy & grants | Hotels, Resorts, Heritage Units, Ropeways, Cruises |
Finance and Ecosystem
Credit Guarantee and CBG Ecosystem Challenge Fund
Credit guarantee
Cover of up to 85% of the loan, up to ₹20 crore per project (₹25 crore for women-led MSMEs), for greenfield MSME projects.
District awards
₹5 crore for the top 3 districts and ₹2 crore for the next 7 under the CBG Ecosystem Challenge Fund.
Ecosystem project grants
Grants of up to 50% of project cost for ecosystem projects.
What Counts
Eligible Capital Cost Under GOBARdhan
| # | Eligible capital cost | Basis |
|---|---|---|
| 1 | New plant and machinery of the CBG plant | Assistance linked to installed capacity in TPD |
| 2 | Feedstock aggregation machinery, organic manure (FOM / LFOM / PROM) value addition machinery and other equipment listed in the guidelines | Reimbursement of actual cost |
| 3 | Pipelines: pipeline, gas chromatograph / analysers, shut-off and isolation valves, safety, metering and monitoring equipment | Cost norm: ₹1 crore per km (steel), ₹0.15 crore per km (MDPE) |
New CBG plant developers
Greenfield plants of any size get the full ₹1.25 crore per TPD capital assistance rate.
Existing biogas or CBG plants
Brownfield plants qualify for additional CBG capacity only, at 50% of the greenfield rate.
Stacking with other schemes
We work across central schemes such as ECMS and the RDI Fund, so we can see where your project fits best.
How We Help
How Bizastra Handles Your GOBARdhan Claim
Register and Assess
We register your plant on the GOBARdhan portal, secure the Plant ID, and map every benefit your project qualifies for.
Structure and File
We structure eligible capital cost across plant, machinery and pipelines and prepare the claims and supporting documents.
Follow Up and Disburse
We manage compliance, CA certification and follow-up through to disbursement of capital assistance and pipeline support.
Why BizAstra
CA-Led Scheme Advisory, End to End
Every benefit mapped
Capital assistance, pipeline support, credit guarantee and offtake each have their own rules. We map all of them to your project.
Capacity and cost done right
Assistance is linked to TPD and actual eligible cost, within the ₹30 crore project cap. We structure both so your claim holds up.
Stacking with state support
We work across central and state schemes, so we can see where state incentives sit alongside GOBARdhan.
CA certification in-house
Cost statements and certifications are handled by our own CA team, which keeps your file clean and fast.
Check If Your CBG Project Qualifies
Send us your plant capacity, location and project cost, and our team will confirm your eligibility and the GOBARdhan support you can claim.
Common Questions
GOBARdhan: Common Questions Answered
What is the GOBARdhan scheme?
GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) is a Central Sector Scheme for the development of the Compressed Biogas (CBG) sector. It is effective from 1 September 2026 and runs from FY 2026-27 to FY 2035-36. It gives CBG plants capital assistance, an administered CBG price, assured offtake, pipeline connectivity support, a credit guarantee and by-product support.
Who is eligible for GOBARdhan support?
CBG plants of all sizes are eligible: greenfield plants, and brownfield plants for additional CBG capacity only. The plant must be registered on the GOBARdhan portal with a valid Plant ID.
How much capital assistance does a CBG plant get under GOBARdhan?
Greenfield CBG plants get Rs 1.25 crore per TPD of installed capacity. Brownfield plants get 50% of this rate for additional capacity, and plants in Special Category Areas get an additional 20%. Feedstock aggregation and organic manure machinery gets 50% of actual eligible cost, up to Rs 0.75 crore per TPD, with an overall cap of Rs 30 crore per project.
What is the Administered CBG Price under GOBARdhan?
The Administered CBG Price is Rs 2,110 per MMBtu (approximately Rs 98 per kg), excluding taxes and compression charges. It applies for a minimum of 10 years, till 31 March 2036.
Is there assured offtake for CBG?
Yes. Producers can get firm offtake of up to 100% of their CBG, at their option, under a Tripartite Agreement with the CGD entity and GAIL. CGD entities have a CBG Obligation of 3% in FY 2026-27, 4% in FY 2027-28 and 5% from FY 2028-29 onwards.
What pipeline support is available?
For CGD network pipeline connectivity, the scheme supports 50% of eligible cost for pipelines up to 75 km, capped at Rs 50 lakh per km for steel and Rs 7.5 lakh per km for MDPE. For trunk pipeline cluster connectivity, it supports 80% of eligible capital cost for up to 75 weighted km per plant, developed by GAIL as Cluster Operator.
What is the GOBARdhan credit guarantee?
Greenfield MSME CBG projects can get a credit guarantee cover of up to 85% of the loan, up to Rs 20 crore per project, or Rs 25 crore per project for women-led MSMEs.
For how many years are the benefits available?
The Administered CBG Price and Affordability Support run for 10 years (FY 2026-27 to FY 2035-36). Capital assistance, pipeline support, the credit guarantee and the Ecosystem Fund are available for 5 years, up to FY 2030-31.