India Targets 10-Fold Rise in CBG Production to Cut Energy Imports
August 12, 2026
India is targeting a major expansion in compressed biogas (CBG) production as part of its strategy to strengthen energy security and reduce dependence on imported fuels.
The government aims to increase CBG production to 5 million standard cubic metres per day (mmscmd) within the next five to 10 years, compared with around 0.4 mmscmd currently. More than 300 CBG plants are also under construction, according to the Ministry of Petroleum and Natural Gas.
The government believes CBG could have further potential to reach around 10 mmscmd as the ecosystem develops.
However, challenges across the CBG supply chain have historically limited the sector’s growth. These include uncertainty around feedstock availability, CBG pricing, offtake and the management of by-products.
To address these issues, the government is developing the Govardhan scheme, which aims to streamline CBG development through a single framework covering registration, financing, connectivity and other support mechanisms.
A key focus is offtake assurance. CBG plants are expected to be mapped with city gas distribution agencies or trunk pipelines so that the gas produced can be effectively utilised.
The government is also working towards longer-term pricing visibility for CBG producers, with pricing intended to remain in place for at least 10 years, subject to periodic reviews.
Pipeline connectivity is another important component. Eligible cluster projects could receive significant support for connectivity to the national gas grid, while standalone plants could be connected to city gas distribution networks.
The broader objective is to create a stronger domestic CBG ecosystem while generating value from organic waste, supporting new clean-fuel infrastructure and reducing India’s dependence on imported energy.
India’s clean-energy transition is therefore expanding beyond solar and wind — with bioenergy and clean fuels becoming an increasingly important part of the country’s energy-security strategy.
