New Delhi, August 6: Prime Minister Narendra Modi chaired a meeting where the Union Cabinet approved the National Circular Bio-Energy Program, known as the Govardhan Project, with a total outlay of ₹23,731 crores. PM Modi shared this information on social media.
In a post on the platform X, he stated that this initiative is a significant step towards realizing our collective dream of clean energy, rural prosperity, and an Atmanirbhar Bharat (self-reliant India).
The Cabinet’s approval of the Govardhan Project aims to significantly boost compressed biogas (CBG) production, targeting an increase of nearly tenfold. This initiative will create a robust and stable ecosystem for investment and innovation. It will benefit farmers, cooperatives, small and medium enterprises, women entrepreneurs, and rural businesses, while also enhancing energy security, reducing dependence on imported fossil fuels, and promoting scientific waste management. The Govardhan Project is a crucial stride towards clean energy in the country. It will convert the abundant agricultural residues, cow dung, press mud (from sugarcane), municipal organic waste, and other biomass resources into clean fuel, organic fertilizers, rural income, and national economic value.
This program will be implemented from the fiscal year 2026-27 to 2035-36, establishing compressed biogas as a key component of the country’s future energy mix.
Through assured demand, profitable and stable pricing, capital support, pipeline infrastructure, loan assistance, and technology development, Govardhan will provide the necessary robust and predictable framework to elevate the country’s biogas (CBG) sector nationally.
The project’s objectives include increasing domestic CBG production nearly tenfold, attracting substantial private investment, and building a vibrant circular bio-economy across the nation.
In recent years, the government has systematically strengthened the foundation of the CBG sector through various initiatives, including sustainable alternative affordable transport programs, market development assistance for organic fertilizers, biomass aggregation machinery schemes, pipeline infrastructure development, and central financial assistance for CBG plants under the National Bio-Energy Program.
These collective efforts have enabled the establishment of over 200 CBG plants, the development of production and evacuation systems, the strengthening of the organic fertilizer value chain, and the demonstration of CBG potential across various feedstocks and geographical areas.
Now, Govardhan is set to take this progress to the next level. Administered by the Ministry of Petroleum and Natural Gas, this initiative creates an integrated platform across the entire CBG value chain. It ensures rapid implementation, improved project economics, and greater certainty for investors, lenders, and developers.
The demand for natural gas in the transport, domestic, industrial, and commercial sectors is continuously rising in the country. CBG can meet a significant portion of this growing demand through domestic renewable energy production. This will enhance energy stability and reduce reliance on imported conventional fuels.
Chemically equivalent to natural gas, compressed biogas can be easily integrated into the existing gas system. Thus, it combines the benefits of renewable fuel with the accessibility and utility of India’s expanding gas infrastructure.
Each CBG plant builds a local circular economy around agricultural residues, animal dung, and other organic resources. It creates opportunities in feed supply, transportation, plant operations, and organic fertilizer production, while also supporting clean waste management and reducing greenhouse gas emissions.
Govardhan has established a dedicated CBG off-take assurance framework to provide producers with a reliable and predictable market. Purchases by city gas distribution entities will help achieve the notified CBG obligations of 3% in FY 2026-27, 4% in FY 2027-28, and 5% from FY 2028-29 onwards in the CNG (transport) and PNG (domestic) sectors.
–
Leave a Comment