POLICY BRIEFING · MoPNG OM 15 SEP 2026

GOBARdhan 2026 Explained for CBG Businesses

MoPNG has issued component-wise operational guidelines for the GOBARdhan Scheme covering Compressed Biogas (CBG). This page translates the official Office Memorandum into a bankability-focused briefing for developers, lenders and EPC teams — offtake, pricing, capital assistance, pipelines, credit guarantee and ecosystem support — with figures taken only from the OM.

Download Official OM PDF ← Back to CBG Portal WhatsApp
₹23,731 Cr
Total Scheme Outlay
₹2,110 / MMBTU
Initial ACP (~₹98/kg)
Up to ₹30 Cr
CA Cap per Project
85% Cover
MSME Credit Guarantee
Explainer only — not legal advice. Source: MoPNG Office Memorandum F. No. L-16022/9/2025-GP-I-Part(1) (E:57024), dated 15 September 2026, enclosing component-wise operational guidelines under GOBARdhan. Eligibility, quantum and disbursement depend on portal registration, appraisal, feasibility and compliance. Always verify against the official PDF and competent authorities before investment decisions.

Citation: MoPNG OM cover memorandum · Scheme period FY 2026-27 to FY 2035-36

What changed I Offtake II Pricing III Capital IV Pipeline V Credit VI Challenge Developer process Misreads Quick reference FAQ Download PDF
Scheme Architecture

What changed for CBG projects

GOBARdhan is a coordinated CBG ecosystem framework — not only a subsidy notice. The OM encloses six operational components. The Scheme was approved on 6 August 2026; these guidelines operationalise it.

Component I

Offtake Assurance

Firm demand via CGD and trunk-pipeline routes, CBO trajectory, and tripartite contracts with GAIL as Synchro Operator.

Component II

Pricing Framework

Administered CBG Price (ACP) paid by the Synchro Operator, plus Government affordability support to keep retail tariffs workable.

Component III

Capital Assistance

Capacity-linked plant grants and separate machinery/FOM support, milestone- and PLF-linked — capped per project and group.

Component IV

Pipeline Infrastructure

Financial assistance for CGD links and GAIL-operated cluster trunk connectivity subject to distance and utilisation rules.

Component V

Credit Guarantee

NCGTC-managed CGSCBG fund providing partial guarantee cover for eligible MSME greenfield CBG term loans.

Component VI

Ecosystem Challenge Fund

District competition awards plus selective grants for equipment, yield, FOM/LFOM value-add and ecosystem gaps.

Legacy programme notes (as stated in the OM): SATAT (MoPNG) is subsumed from 1 September 2026, with prior committed liabilities continuing. BAM (MoPNG) and CFA for CBG under MNRE Waste-to-Energy are addressed under Capital Assistance with netting / legacy liability rules. MDA (Department of Fertilizers) is subsumed from 1 September 2026 under the Pricing Framework component, with prior MDA liabilities continuing.

Sources: OM cover ¶1–2; Comp I §2.3.3; Comp II §2.6; Comp III §2.3–2.6

Component I

Assured Offtake Mechanism

Business meaning: replace “reasonable endeavour” uncertainty with firm contractual offtake — while adding producer-side quality, nomination and supply obligations.

Demand framework

Up to 100% offtake — with conditions

  • At producer option: Assured offtake of up to 100% of CBG available for sale, subject to technical and operational feasibility.
  • Two mapping routes: (i) CGD entities / Geographical Areas; (ii) CBG clusters for aggregation and trunk pipeline injection.
  • Mandatory CGD procurement across CNG (Transport) and PNG (Domestic) per CBO trajectory.
  • Firm vs reasonable-endeavour: Only a firm Tripartite Agreement qualifies for the Assured Offtake Mechanism.
FY27: 3% CBO FY28: 4% CBO FY29+: 5% CBO

CBO may be amended by MoPNG as required.

Contract & remedies

TOP / SOP ramp-up

  • Take-or-Pay (CGD): Year 1 — no TOP. Year 2 onwards — offtake up to 90% of Annual Nominated Quantity (ANQ), else financial disincentive.
  • Supply-or-Pay (Producer): Year 1 — no SOP. Year 2 onwards — supply up to 50% of Annual Contract Quantity (ACQ), else financial disincentive.
  • Producer penalty rate: 10% of prevailing ACP per MMBTU of producer shortfall (Year 2+).
  • Offtaker penalty: shortfall × rate linked to APM base price + Price Adjustment Factor (or as specified with PAB approval).
Eligibility & compliance

What plants must have

  • GOBARdhan portal registration; commissioned or under construction.
  • Route-wise quality: PNGRB Access Code regulations and/or IS 16087:2025 (Biogas/Biomethane), as applicable.
  • Real-time SCADA quantity monitoring (purification outlet / cascade fill / custody transfer) with MoPNG data access.
  • Online Gas Chromatograph or Mass Spectrometer for quality, with MoPNG data access.
  • Automatic interlock / shut-off if composition leaves permissible limits; geo-tagged equipment images on portal.
Institutions

Who runs offtake

  • Synchro Operator: GAIL (India) Limited — procurement, co-mingling, payment to producers under Pricing Framework.
  • PMA: resolves offtake escalations among producer, CGD and GAIL; reports to MoPNG.
  • PAB: chaired by Secretary, MoPNG — trajectory, clarifications, modifications.
  • CGD route: Tripartite Agreement — Producer + CGD entity + Synchro Operator.
  • Trunk route: firm Tripartite — Producer + Synchro Operator + Cluster Operator (under Component IV).
DPR implication: Budget SCADA, online GC/MS, interlocks and data reporting from day one. Model Year-1 ramp-up carefully (no TOP/SOP), then Year-2+ 90%/50% obligations against ANQ/ACQ — not vague “nameplate capacity”.

Sources: Comp I §§2.3, 3.2–3.9, 4–8; Appendix I TOP/SOP & enforcement

Component II

CBG Pricing Framework

Business meaning: clearer revenue modelling via Administered CBG Price — while accepting that ACP can be reviewed, and by-product realisation is part of the price design.

Administered CBG Price
₹2,110 / MMBTU
≈ ₹98 per kg at 95% methane — excluding applicable taxes and compression charges
  • Horizon: ACP in place for a minimum of ten years (till 31 March 2036).
  • Revision: PAB determines ACP for each 12-month period; may review/revise; PPAC notifies. Revisions apply prospectively.
  • Payment: Synchro Operator pays eligible producers based on measured CBG quantity at the applicable custody transfer point.
  • By-products: ACP includes an incentive component for by-product sale. Unscientific / non-compliant disposal is not permitted; producer bears related expenditure and reporting.
Affordability support

Government → Synchro Operator

  • Support remains for FY 2026-27 to FY 2035-36.
  • Capped at ₹10 per kg (equivalent to ₹215.31 per MMBTU).
  • Per-unit support determined annually (or as required) — one funding source for ACP settlement, not a separate producer grant.
  • Designed so retail CNG/PNG tariffs can remain competitive while producers receive ACP.
Do not treat ACP as an immutable fixed retail floor for the entire plant life. Model base case at initial ACP and run sensitivity for notified revisions.

Sources: Comp II §§2.4–2.6, 3.2–3.3, 4.1–4.3

Component III

Direct Capital Assistance

Business meaning: non-dilutive, capacity-linked support — but it is two sub-components, milestone-gated, and capped. It is not automatic day-one equity.

CategoryAssistanceKey conditions
Sub-Component I — Plant core (greenfield) ₹1.25 Cr / TPD Eligible greenfield CBG establishment
Brownfield expansion 50% of applicable Clause 4.1 rate Only additional capacity from fresh CAPEX
Special Category areas +20% over Clause 4.1 NE States & Sikkim; Uttarakhand; Himachal Pradesh; UTs of J&K, Ladakh, Lakshadweep, A&N
Existing biogas → CBG upgrade ₹0.60 Cr / TPD Max ₹5 Cr per project
Sub-Component II — Machinery & FOM 50% of eligible cost (max ₹0.75 Cr / TPD) Feedstock aggregation & organic manure value-addition machinery (eligible list)
Project aggregate cap ₹30 Cr / project Across both CA sub-components
Group / entity cap ₹500 Cr / financial year Entity and subsidiaries (as defined in guidelines)
Application window Open till 31.12.2030
Disbursement

Three performance tranches

  • Tranche 1 — 25%: Consent to Establish (SPCB/PCC) or relevant PESO approval/licence + Bank Guarantee valid 48 months.
  • Tranche 2 — 25%: First commercial sale report supported by invoice (Appendix I) + Bank Guarantee valid 24 months.
  • Tranche 3 — 50%: Minimum 3 consecutive months of operation + continuous 24-hour operation with PLF test:
    PLF ≥ 75% → 100% of T3 PLF 50–74.9% → pro-rata PLF < 50% → 0% + BGs encashed
Exclusions & netting

Do not assume eligibility

  • Projects with ≥50% MSW / sewage feedstock are excluded from Capital Assistance under these guidelines.
  • Double counting Central support for the same scope must be avoided.
  • Where BAM support was sanctioned/released for the same machinery, CA is reduced by that BAM amount.
  • Legacy MNRE CFA / BAM committed liabilities stay with MNRE / MoPNG respectively and are not covered under this component’s new outlay.
Illustrative only: A 10 TPD greenfield plant could be eligible for up to ₹12.5 Cr (plant) + up to ₹7.5 Cr (machinery) = ₹20 Cr before the ₹30 Cr project cap — if costs, eligibility and milestones are met. This is not an assured grant.

Sources: Comp III §§2.3–2.4, 3.10, 4.1–4.6, 5.2, 7.3; application window §4.6.1

Component IV

Pipeline Infrastructure for Offtake

Business meaning: reduce evacuation risk with co-funded last-mile / cluster lines — distance-capped and utilisation-verified.

Sub-Component I — CGD links

50% FA up to 75 km

  • Financial Assistance for pipeline length up to 75 km; length beyond is at beneficiary cost and ineligible for FA.
  • FA = 50% of eligible project cost, subject to ceilings:
    Steel: max ₹50 lakh/km MDPE: max ₹7.5 lakh/km
  • For calculation, assumed laying cost norms: ₹1 crore/km Steel and ₹0.15 crore/km MDPE.
  • Eligible cost may include pipeline, GC/analysers, shut-off/isolation valves, safety, metering — not plant internals.
  • Application window till 31.12.2030.
Sub-Component II — Trunk clusters

GAIL as Cluster Operator

  • GAIL develops, owns, operates and maintains approved cluster trunk infrastructure.
  • Cluster formation: at least two CBG plants with aggregate capacity preferably 20 TPD or higher; each plant at least 2 TPD.
  • Only quantities not already under firm CGD offtake are considered for cluster formation.
  • Effective shared pipeline length formula; assistance framed around up to 75 km per plant effective distance.
  • Firm offtake agreements with Cluster Operator required before cluster DPR / PAB approval path.

Sources: Comp IV §§3.1, 3.10, 4.1.3–4.1.8, 5.1–5.3

Component V

Credit Guarantee (CGSCBG)

Business meaning: make MSME CBG term loans more bankable via partial sovereign-backed guarantee — it is not a grant, waiver or Government repayment of your loan.

Cover & fund

₹625 Cr fund · NCGTC trustee

  • Guarantee cover: 85% of loan amount, capped at ₹20 Cr (general MSME) or ₹25 Cr (women-led MSME).
  • Tenure: up to 15 years including 18 months moratorium from first disbursement.
  • Scheme duration: until 31 December 2030, or until loans cumulating to ₹15,000 crore are issued — whichever is earlier.
  • Guarantee fee (AGF): 0.5% p.a. of disbursement/outstanding (as specified).
  • Lock-in: 18 months from commencement of guarantee cover before invocation.
  • Collateral: none required for the guaranteed portion; MLI may take collateral only on the uncovered portion.
Who qualifies / who does not

Greenfield MSME only

  • Registered on GOBARdhan portal with valid Plant ID.
  • Enterprise classified as MSME; CBG treated as eligible agri-infrastructure under RBI PSL framework.
  • Not eligible: MSW/sewage ≥50% feedstock; acquisition of existing plants; standalone upgradation / capacity enhancement (brownfield); projects not on portal; loans sanctioned before guideline notification.
  • PSL agri-infrastructure loans also subject to RBI aggregate sanctioned limit of ₹100 crore per borrower across the banking system (as cited in the OM).
  • Process flows via Jan Samarth → MLI → NCGTC (CGPAN after fee payment).

Sources: Comp V §§1, 5–9, 11–12, 14

Component VI

CBG Ecosystem Challenge Fund

Business meaning: selective ecosystem money — district competition plus enablement grants for technology, yield and by-product value chains. Application does not create entitlement.

Sub-Component A

District CBG Challenge

  • Total Component VI outlay: ₹500 crore for FY 2026-27 to FY 2030-31.
  • Annual ranking via GOBARdhan Portal applications by District Collector / DM.
  • Top 3 districts: ₹5 crore each.
  • Remaining in top 10: ₹2 crore each.
  • Awards independent of separate enablement grants a district may receive under Sub-Component B.
Sub-Component B

Ecosystem Enablement

  • Supports domestic CBG equipment, process/yield improvement, FOM/LFOM value addition, and approved ecosystem gaps (including feedstock aggregation infrastructure).
  • Eligible applicants include CBG developers, research/academic institutions, start-ups and CPSEs.
  • Grant typically up to 50% of eligible project cost; PAB may approve higher in exceptional cases.
  • No double funding for the same scope under another Central scheme.
  • PMA: Centre for High Technology (unless MoPNG notifies otherwise).

Sources: Comp VI §§3.1–3.4, 4.6, 5.2–5.4, 6.2

Execution

How a developer should proceed

Sequencing implied by the guidelines — not a substitute for statutory calendars or your DPR.

Feedstock & site diligence

Quantity, composition, seasonality, radius, landed cost and contracts. Confirm MSW/sewage share stays below exclusion thresholds if seeking CA/CG.

Evacuation study

CGD mapping vs cascade vs trunk cluster feasibility; quality specs for the chosen route (PNGRB codes and/or IS 16087:2025).

GOBARdhan registration

Obtain project registration and Plant ID — required for offtake, ACP, CA, pipeline FA and credit guarantee paths.

Bankable DPR

Technology, mass balance, CAPEX/OPEX, ACP revenue case with revision sensitivity, DSCR, risk and PLF pathway for tranche 3.

Firm offtake & statutory approvals

Tripartite firm offtake (not only reasonable-endeavour); CTE/PESO and other clearances needed for CA milestones.

Finance structure

Promoter equity + bank debt; CGSCBG via Jan Samarth if MSME greenfield; plan working capital and BG for CA tranches — do not treat CA as day-one equity.

EPC with compliance built-in

SCADA, online GC/MS, interlocks, geo-tagged uploads and MoPNG data access designed into the plant — not bolted on later.

Commissioning → first sale → PLF

Document first sale for tranche 2; run continuous months and 24-hour PLF for tranche 3; keep CA/BAM self-certifications accurate.

Risk of misreading

Common misunderstandings

“₹2 Cr per TPD is automatic”

₹1.25 Cr/TPD (plant) and up to ₹0.75 Cr/TPD (machinery) are separate, capped, eligibility- and milestone-linked. Aggregate CA cannot exceed ₹30 Cr per project.

“ACP never changes”

Initial ACP is ₹2,110/MMBTU, but PAB may review/revise; PPAC notifies. Horizon runs at least to 31 March 2036 — not a promise of zero revision.

“Credit guarantee pays my loan”

CGSCBG covers the lender’s risk partially. The borrower remains liable. Greenfield MSME only; many brownfield / MSW cases are excluded.

“Cluster needs exactly ≥20 TPD”

Guidelines say aggregate capacity is preferably 20 TPD or higher, with at least two plants of ≥2 TPD each — not a hard single-number entitlement.

“IS 16087:2016 still governs”

This OM references IS 16087:2025 for biomethane specification (with applicable PNGRB access codes by route).

“10 TPD means ₹20 Cr in the bank”

₹12.5 + ₹7.5 = ₹20 Cr is illustrative maximum eligibility arithmetic before the ₹30 Cr cap — not a guaranteed disbursement schedule.

Cheat sheet

Quick reference (OM figures only)

ItemVerified point
Total outlay₹23,731 crore (FY 2026-27 to FY 2035-36)
Initial ACP₹2,110/MMBTU ≈ ₹98/kg at 95% CH₄, excl. taxes & compression
Affordability supportUp to ₹10/kg (₹215.31/MMBTU) to Synchro Operator
CBO trajectory3% / 4% / 5% from FY27 / FY28 / FY29+
TOP / SOPYear 2+: up to 90% ANQ / 50% ACQ; Year 1 relief
Greenfield CA (plant)₹1.25 Cr/TPD
Machinery CA50% eligible cost; max ₹0.75 Cr/TPD
Biogas→CBG upgrade₹0.60 Cr/TPD; max ₹5 Cr/project
CA project / group caps₹30 Cr/project; ₹500 Cr/FY (entity & subsidiaries)
Pipeline FA50%; Steel ≤₹50 L/km; MDPE ≤₹7.5 L/km; ≤75 km
CGSCBG₹625 Cr fund; 85%; ₹20 Cr / ₹25 Cr ceilings; to 31.12.2030 or ₹15,000 Cr loans
Challenge Fund₹500 Cr (FY26–27 to FY30–31); district ₹5 Cr / ₹2 Cr awards
CA / pipeline windowsApplications till 31.12.2030
Clarifications

FAQ for businesses

Is SATAT gone?

SATAT administered by MoPNG is subsumed from 1 September 2026 under the Assured Offtake Mechanism. Committed liabilities incurred under SATAT prior to GOBARdhan notification continue to be borne and discharged. Existing SATAT ROs are encouraged to integrate under GOBARdhan.

Who pays me for CBG under firm offtake?

Under the guidelines, the Synchro Operator (GAIL) is responsible for payment to CBG producers under the Pricing Framework and is a party to every Tripartite Agreement.

Can I claim Capital Assistance and Credit Guarantee if my plant is mostly MSW?

Projects predominantly based on MSW/sewage where at least 50% of feedstock for CBG is from MSW/sewage are excluded from Capital Assistance and from CGSCBG coverage under these guidelines.

Does brownfield expansion get credit guarantee?

CGSCBG covers greenfield projects. Standalone biogas upgradation and capacity enhancement projects are listed as not eligible for guarantee cover.

What quality standard should my EPC quote?

This OM cites IS 16087:2025 for biomethane, plus the applicable PNGRB Access Code regulations depending on trunk, CGD or cascade retail-outlet delivery.

Primary source

Download the official OM

Read the full 78-page component-wise operational guidelines. This webpage is an explainer only.

Download GOBARdhan OM PDF (MoPNG) Email BIOPOWER WhatsApp
Citation
Government of India, Ministry of Petroleum and Natural Gas.
Office Memorandum: Component-wise Operational Guidelines under the GOBARdhan Scheme for development of the Compressed Biogas (CBG) sector.
F. No. L-16022/9/2025-GP-I-Part(1) (E:57024) · Kartavya Bhawan-03, New Delhi · Dated 15 September 2026.
Issued with approval of the Hon’ble Minister of Petroleum and Natural Gas · Signed (L. Robin), Under Secretary.
Next step

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