The Government of India has launched a comprehensive 10-year mission to accelerate the production and adoption of Compressed Biogas (CBG), introducing assured pricing, a credit guarantee mechanism, and long-term policy support to encourage investments in the sector. The initiative aims to strengthen India’s clean energy transition while reducing dependence on imported natural gas and liquefied natural gas (LNG).
Under the mission, developers of CBG plants will benefit from an assured procurement price, providing revenue certainty and improving the financial viability of projects. A dedicated credit guarantee scheme will also help investors and entrepreneurs secure financing by reducing lending risks for banks and financial institutions, particularly for small and medium-sized projects.
The programme seeks to expand domestic production of CBG using agricultural residues, municipal solid waste, livestock waste, and other organic feedstocks. By converting waste into clean fuel, the initiative is expected to address stubble burning, improve waste management, generate rural employment, and create additional income opportunities for farmers.
The government expects the long-term policy framework to accelerate the establishment of new CBG plants across the country, supporting India’s targets for cleaner transportation fuels and lower greenhouse gas emissions. Increased domestic biogas production is also expected to reduce reliance on imported fossil fuels, strengthen energy security, and improve the country’s trade balance.
Industry stakeholders have welcomed the decade-long roadmap, noting that stable pricing and easier access to finance are likely to attract greater private investment into the bioenergy sector. The mission is expected to complement existing clean energy programmes and contribute to India’s broader goals of achieving sustainable economic growth, enhancing circular economy practices, and progressing toward its net-zero emissions commitments.