New Delhi, 2 July 2026: A Confederation of Indian Industry study released today said the Government of India's ambitious vision of establishing 5,000 CBG plants and producing 15 million metric tonnes (MMT) of CBG annually by 2030 will require a fundamental transition from to a market-driven renewable gas economy.
Titled Mainstreaming Compressed Biogas (CBG), the report was released at Conference on Compressed Biogas – Powering India's Energy Security Through CBG in New Delhi.
The conference was organised in association with the Petroleum & Natural Gas Regulatory Board.
The report presents a comprehensive strategic roadmap for positioning CBG as a mainstream pillar of India's energy security, circular economy, rural development, and decarbonisation agenda.
To accelerate the transition to market-driven renewable gas economy, the report recommends a comprehensive reform agenda, including rationalisation of GST to 5% across the entire CBG value chain, including all critical equipment; operationalisation of Renewable Gas Certificates (RGCs) through transparent pricing and trading mechanisms; permitting private trading of Fermented Organic Manure (FOM/LFOM); mandating fertiliser companies to procure FOM at remunerative prices; expanding CGD and pipeline infrastructure with dedicated CBG injection facilities; and scaling the co-location of CBG plants with CNG stations while developing downstream distribution networks.
The report also advocates strengthening biomass aggregation systems, improving project financing, promoting community-led feedstock mobilisation, and establishing a National Bioenergy Mission to coordinate implementation across ministries and states.
Prepared against the backdrop of rising global energy demand, geopolitical uncertainties, and India's continued dependence on imported fossil fuels, the report highlights the strategic importance of developing indigenous renewable gas resources to strengthen national energy resilience.
The report presents a holistic assessment of the global and Indian energy landscape, India's evolving policy ecosystem, feedstock availability, technology pathways, infrastructure readiness, state-level initiatives, and stakeholder perspectives, while undertaking detailed scenario-based modelling of both supply and demand trajectories up to 2030.
The analysis evaluates sectoral growth under Business-as-Usual, Moderate and Aggressive trajectories, alongside demand projections.
The study concludes that while the recently introduced CBG Blending Obligation establishes a critical minimum assured demand, improves project bankability, and enhances investor confidence, long-term sectoral sustainability will depend upon diversified offtake across industrial, transport, commercial, institutional, and City Gas Distribution (CGD) sectors, thereby reducing reliance on mandatory blending alone.
By integrating international best practices with India's unique biomass potential and policy landscape, the report envisions a resilient, investment-ready, and self-sustaining CBG ecosystem that enhances energy security, reduces import dependence, generates rural livelihoods, promotes circular economy principles, and positions renewable gas as a strategic contributor to Atmanirbhar Bharat and India's long-term Net Zero ambitions.
On the report, Mr. Chandrajit Banerjee, Director General, CII, said, "With significant dependence on imported fossil fuel, compressed biogas (CBG) presents a strategic opportunity to enhance energy security, promote circular economy practices, reduce emissions, improve waste management, and create additional income opportunities for farmers."
Dr. Ranjit Rath, Chairman, CII National Hydrocarbon Committee and Chairman & Managing Director, Oil India Ltd., said that the report articulates a strategic roadmap for mainstreaming compressed biogas by building upon the policy momentum created through SATAT and the CBG Blending Obligation. He noted that it advocates a calibrated transition from policy-induced demand to a diversified, market-driven renewable gas ecosystem capable of ensuring long-term commercial viability, investment attractiveness and energy security.
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Sampoorn Gobardhan Scheme
Speaking at CII Conference on Compressed Biogas, Mr. Rajesh Verma, Chairperson, Commission for Air Quality Management (CAQM), today said, "Energy security, environmental sustainability and clean air have now become interconnected priorities." Emphasising the wider benefits of CBG, he stated, "Every litre of imported fuel avoided strengthens our national self-reliance, while every tonne of stubble or waste converted into energy adds to rural income and clean fuel supply. Every reduction in emissions from managing paddy stubble, agricultural residue or municipal solid waste improves air quality and public health." He further observed, "India's clean energy transition relies on a multi-pronged approach, with CBG standing out as a vital pillar. CBG is not just an alternative fuel, but a cornerstone for India's self-reliant and secure energy future and for building a circular economy."
Mr. Alok Tripathi, Joint Secretary, Ministry of Petroleum and Natural Gas, said the Ministry is developing an integrated Sampoorn Gobardhan Scheme, which will seek to address key sectoral challenges relating to assured offtake, pricing certainty, long-term policy visibility, feedstock management and by-product utilisation, while serving as the central pillar of the future CBG ecosystem.
"CBG has some inherent advantages. It is a sustainable solution to enhance our energy security, improves the rural economy, converts waste to wealth and promotes the circular economy. We would like to have an offtake assurance mechanism so that whatever CBG is produced is procured. No molecule of CBG should be wasted that should be our intent,” said Tripathi.
Dr. Ranjit Rath, Chair, Hydrocarbon Committee, CII, said, "CBG is a societal commitment for all of us. While the technology is established, feedstock assurance and aggregation remain critical for building a viable ecosystem. We are taking a leap of faith towards the promise of the CBG ecosystem, and with assurances of offtake and price stability, it is time for all of us to join this momentum."
The conference brought together policymakers, regulators, industry leaders, financial institutions and other stakeholders to deliberate on advancing India's compressed biogas ecosystem. The deliberations reinforced the need for coordinated action across government, industry, financial institutions and states to realise the full potential of CBG as a key pillar of India's energy security, circular economy and clean energy transition.
Discussions centred on strengthening energy security, improving air quality through the utilisation of agricultural residue and municipal solid waste, enhancing rural livelihoods, ensuring feedstock availability and aggregation, enabling financing, and creating a stable policy ecosystem.
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