The Ministry of Petroleum and Natural Gas (MoPNG) has allocated Rs 30 billion under the Special Assistance to States for Capital Investment for 2026-27 to support the development of a compressed biogas (CBG) ecosystem. The initiative is aimed at encouraging states to strengthen approval mechanisms, streamline feedstock management, and enhance market linkages. It is expected to facilitate the expansion of waste-to-energy projects, while supporting rural income generation and lowering carbon emissions.
Furthermore, in a separate development, MoPNG has introduced financial assistance for the procurement of biomass aggregation machinery to strengthen biomass supply chains. The support is available to both upcoming and operational CBG plants. It is intended to improve biomass collection efficiency and address issues such as stubble burning, while enabling additional income opportunities for farmers. Eligible projects include those meeting specified capacity and biomass utilisation criteria and registered on the GOBARdhan portal. Moreover, applications are required to be submitted through the designated platform prior to machinery procurement. The deadline for registration under the scheme is April 30, 2026.
The portal can be accessed here
In July 2025, the MoPNG revised the financial assistance disbursement process for CBG projects to support the purchase of biomass aggregation machinery. As per the updated guidelines, CBG plants with a minimum capacity of 2 tonnes per day that use over 50 per cent biomass as feedstock are eligible to receive financial assistance of Rs 9 million. To qualify for this subsidy, both existing and upcoming CBG plants must use at least 50 per cent biomass or a minimum of 3,000 metric tonnes of biomass annually.
