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).
Capital assistance per TPD (greenfield)
Per MMBtu assured CBG price
Offtake at producer's option
Credit guarantee (greenfield MSMEs)
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 |
GOBARdhan Benefits at a Glance
| 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 for CBG Plants
| 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 |
Administered CBG Price and Assured Offtake

Administered CBG Price

Assured offtake

By-product (FOM) support
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 |
Pipeline Connectivity Support
| 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 |
Credit Guarantee and CBG Ecosystem Challenge Fund

Credit guarantee

District awards

Ecosystem project grants
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

Existing biogas or CBG plants

Stacking with other schemes
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.
CA-Led Scheme Advisory, End to End

Every benefit mapped

Capacity and cost done right

Stacking with state support




