Centre to launch Sampoorn Gobardhan Scheme on August 10 to boost compressed biogas production

Image for Centre to launch Sampoorn Gobardhan Scheme on August 10 to boost compressed biogas production

India is about to bet big on cow dung.

On August 10 — World Biofuel Day — the Centre will launch the Sampoorn Gobardhan Scheme, a fresh push to turn cattle dung, farm waste and garbage into compressed biogas (CBG) that can run your car, your stove, your city.

The pitch is simple: bigger subsidies, guaranteed prices, faster plants.

The reason it's urgent: the old plan basically flopped.

Back in 2018, the government launched SATAT with a bold target — 5,000 CBG plants across India.

Fast forward eight years.

👉 Only 219 plants are actually running.

👉 Over 1,094 letters of intent were issued, but most never turned into steel and gas.

That's not a small miss. That's a scheme stuck in first gear for the better part of a decade.


🐄 So what exactly is CBG, and why cow dung?

Compressed biogas is basically methane, extracted from decomposing organic waste, cleaned up, and compressed to the same quality as CNG.

Feed it cattle dung, poultry litter, food waste, sewage sludge or crop residue — and out comes a fuel that can go straight into gas pipelines or CNG stations.

The "Gobardhan" name literally means wealth from cow dung — a rural circular economy where waste from farms becomes fuel and income, instead of pollution.

Plants set up by gaushalas using cattle dung already get 20% extra central assistance — a hint of how much the government wants villages, not just corporates, in this game.


⚡ Why the sudden urgency

Here's the twist that makes this more than a routine policy refresh.

CBG blending isn't optional anymore.

It's the law.

Since April 2025, city gas distributors must blend CBG into CNG and piped gas supplies, and the targets only go one direction:

  • 📈 1% in 2025-26
  • 📈 3% in 2026-27
  • 📈 4% in 2027-28
  • 📈 5% from 2028-29 onwards

India's CNG and PNG networks burn through roughly 34-35 million standard cubic metres of gas a day. Even a 1% mandate needs about 260,000-300,000 tonnes of CBG a year.

The good news: current CBG sales are already at 0.63-0.66 MMSCMD — almost 2% blending, ahead of the original goal.

The bad news: at this pace, hitting 5% by 2029 is a stretch.


💸 Follow the money

That gap is exactly why big money is piling in before the ink is even dry on the new scheme.

  • 🏭 Reliance Industries — planning ₹1.4 lakh crore in CBG investments, including ₹65,000 crore for 500 plants in Andhra Pradesh and ₹75,000 crore for 350 in the Northeast, aiming for 500 plants nationwide by 2030
  • Adani TotalEnergies — building five plants, including a 600-tonnes-a-day facility in Uttar Pradesh
  • 🚗 Suzuki Motor Corporation — betting on at least five cow-dung-based plants in Gujarat

Officials believe the enhanced subsidies and assured procurement prices under Sampoorn Gobardhan could unlock another 600-700 new plants in just the next year — more than triple what SATAT managed in eight.

Why did SATAT stall while everyone agrees the idea is sound?

Money and certainty.

Developers need to know their feedstock will show up and their gas will get bought at a fair price — without that, no bank finances the plant, and no promoter breaks ground.

That's the exact bottleneck the new scheme is engineered to remove.


🌊 The bigger picture

Strip away the acronyms and this is really a story about India trying to build an entirely new fuel supply chain out of what used to be waste — cow dung, crop stubble, kitchen scraps, sewage.

If it works, it cuts fuel imports, cuts emissions, and puts extra income into the hands of farmers and gaushalas who currently see dung as a disposal problem, not a paycheck.

If it doesn't, the country risks missing a legally binding blending target with barely three years of runway left.

Eight years of a stalled scheme.

One new law forcing the industry's hand.

And a August 10 launch that will show whether India can finally turn cow dung into a genuine energy source at scale.

That's all for now!