Cabinet Clears Rs 23,731-Crore GOBARdhan Scheme for Biogas Scale-Up
India's Cabinet has approved the GOBARdhan Scheme at a value of Rs 23,731 crore, with the stated aim of scaling up compressed biogas production in the country, as reported by DD News on 29 September 2026. The scheme represents a significant policy commitment to the biomass and biogas segment of India's non-conventional power sector.
| Detail | Information |
|---|---|
| Scheme Name | GOBARdhan Scheme |
| Approving Authority | Cabinet (Government of India) |
| Approved Value | Rs 23,731 crore |
| Focus Area | Compressed Biogas Production |
| Reported By | DD News, 29 September 2026 |
Context Within India's Biomass Power Project Pipeline
Projects India tracks 149 live projects in the Non Conventional Power Projects (Biomass) sub-sector. Of these, seven have been added to the database in the last 90 days, indicating steady deal flow in the segment even ahead of this Cabinet decision. The GOBARdhan approval is likely to further stimulate activity across this pipeline.
Where Biomass Projects Are Concentrated
The geographic spread of tracked biomass projects points to clear hotspots for suppliers and contractors. Maharashtra leads with 27 tracked projects, followed by Karnataka with 18 and Gujarat with 15. Andhra Pradesh accounts for 14 projects, Punjab for 12, and Madhya Pradesh for 11. These six states together represent the bulk of current biomass project activity and are the logical priority markets for businesses looking to participate in GOBARdhan-linked opportunities.
Stage Breakdown: Where Projects Stand
An analysis of the 149 tracked projects by development stage reveals that a substantial share remains at early stages, where procurement decisions are yet to be made. The breakdown is as follows:
- Under Approvals: 58 projects — the largest single group, likely to move faster given the new policy backing
- Planning: 24 projects — still defining scope and structure
- Completed: 24 projects — benchmarks for technology and execution standards
- Hold: 15 projects — stalled, but policy tailwinds may prompt revival
- Construction Started: 12 projects — active procurement underway
- Cancelled: 11 projects — removed from the active pipeline
The 58 projects currently under approvals represent the most immediate opportunity for early-stage engagement, as regulatory clearances are often the trigger for equipment and civil contracting tenders. The 15 projects on hold may also see renewed momentum if the GOBARdhan Scheme accelerates financing and off-take arrangements for biogas producers.
What this means for suppliers and contractors
The Cabinet's Rs 23,731-crore commitment to the GOBARdhan Scheme signals sustained government backing for compressed biogas as a mainstream energy source. For suppliers of biogas plant equipment, civil contractors, gas purification technology providers and feedstock logistics companies, the approval broadens the addressable market materially.
Maharashtra, Karnataka and Gujarat — the three leading states by project count — are the most active markets right now and merit priority attention. Punjab's 12 tracked projects are notable given the state's large agricultural residue base, which is a core feedstock for compressed biogas. Andhra Pradesh and Madhya Pradesh round out the top six.
With 58 projects under approvals, the near-term pipeline is substantial. Suppliers who engage promoters at this stage — before construction contracts are placed — are best positioned to influence specifications and secure early orders. The 12 projects already in construction represent immediate procurement opportunities across civil, mechanical and instrumentation scopes.
There are currently no open tenders listed under Power Projects on the live tenders board, but the pace of project additions — seven in the last 90 days — suggests new tenders are likely to follow. Readers can monitor the full Power Projects sector overview and the biomass sub-sector pipeline for updates as projects progress through approvals into procurement.
Frequently asked questions
What is the GOBARdhan Scheme and how much has been approved?
The GOBARdhan Scheme has been approved by India's Cabinet at Rs 23,731 crore to scale up compressed biogas production in the country, as reported by DD News on 29 September 2026. No further breakdown of the allocation has been reported.
How many biomass power projects are active in India right now?
Projects India tracks 149 live projects in the Non Conventional Power Projects (Biomass) sub-sector. Of these, 58 are under approvals, 24 are in planning, and 12 have started construction, with seven new projects added in the last 90 days.
Which states have the most biomass power projects in India?
Maharashtra leads with 27 tracked biomass projects, followed by Karnataka with 18, Gujarat with 15, Andhra Pradesh with 14, Punjab with 12, and Madhya Pradesh with 11, based on Projects India's current database.
Are there open tenders for biomass or biogas projects in India?
As of the latest data, there are no open tenders listed under Power Projects on the Projects India live tenders board. However, seven new biomass projects have been added in the last 90 days, suggesting procurement activity is building.
