Business

India’s Compressed Biogas Industry Eyes ₹5,000 Crore Investment In 2026–27

India’s biogas industry is heading towards a major expansion phase, with investments likely to surpass ₹5,000 crore in the financial year 2026–27, according to estimates shared by the Indian Biogas Association (IBA).

The outlook reflects increasing demand for gas-based fuels and a growing focus on renewable energy solutions.

Based on official figures referenced by the association, 94 compressed biogas plants collectively sold more than 31,400 tonnes of CBG during FY 2024–25. This uptake highlights the sector’s steady growth and rising acceptance in the domestic energy market.

Looking ahead, the IBA expects a sharp rise in the commissioning of new CBG plants, supported by streamlined feedstock supply systems and more cohesive policy frameworks.

These developments are likely to ease implementation challenges and encourage faster adoption of biogas technologies nationwide.

The association also pointed to significant opportunities to enhance efficiency and capacity usage among the country’s millions of small, traditional biogas digesters.

At the same time, government-backed programmes are scaling up assistance for medium-sized plants that offer cleaner cooking solutions, generate rural employment and produce organic manure.

“The relaxed GST regime is going to augur ease of doing business in the CBG ecosystem. We anticipate that a reduction of 7 per cent in the applicable GST rate for the CBG sector shall significantly improve project viability, and the direct impact would translate into a 45 per cent increase in new investments in the industry over the short to medium term,” IBA Chairman Gaurav Kedia said.

He further added, “Indirectly across the industry value chain, the multiplier effect would be much larger.”

What Is Compressed Biogas?

Compressed biogas is a clean and renewable fuel obtained by processing biogas generated from organic waste such as agricultural residue, animal waste and sewage.

With properties similar to compressed natural gas, CBG plays a crucial role in reducing dependence on imported fossil fuels, lowering emissions and strengthening rural economies.

National initiatives, including the SATAT scheme, continue to promote the production and utilisation of CBG as a sustainable fuel option for transport, industrial use and household cooking.

To encourage investment, the Ministry of New and Renewable Energy currently provides central financial assistance covering 15 to 20 per cent of a project’s capital expenditure.

Additional marketing support of ₹1.50 per kilogram is offered to promote organic fertilisers, a key byproduct of biogas plants.

Financial incentives are also available for pipeline infrastructure linking plants to the gas grid.

Taken together, these policy measures will likely create a supportive investment environment, enabling the biogas sector to emerge as a critical component of India’s clean energy transition and long-term sustainable growth.

Also Read: Indian Markets Close Week On A Positive Note Over Global Optimism

Bishal Singh

Recent Posts

PM Modi Releases 24th PM-KISAN Instalment Of Rs 18,680 Crore To 9.34 Crore Farmers

PM Modi releases Rs 18,680 crore under PM-KISAN's 24th instalment, benefiting 9.34 crore farmer families…

34 mins ago

PM Modi Says Agriculture Budget Increased Fivefold Since 2013-14; Farmers Gained Rs 50 Lakh Crore

PM Modi said the agriculture budget rose over fivefold since 2013-14, with farmers gaining Rs…

35 mins ago

Kochi Police Book YouTuber Amrit Singh Darren Over Alleged Communal Remarks About Fort Kochi Cafe

Kerala Police book YouTuber Amrit Singh Darren over alleged communal remarks targeting Fort Kochi’s Kashi…

59 mins ago

HM Amit Shah Inaugurates UP BJP Executive Committee Meeting In Lucknow Ahead Of 2027 Polls

Amit Shah inaugurated the UP BJP meeting in Lucknow to review preparations for the 2027…

1 hour ago

PM Modi Recalls 2001 Banaskantha Rally; Says Khatla Sabha Could Have Set World Record

PM Modi revisits Banaskantha's 2001 rally, recalls a three-lakh gathering and praises the traditional Khatla…

2 hours ago

PM Modi Launches Projects Worth Rs 14,000 Crore In Gujarat; Flags Off Two Trains

PM Modi launches projects worth over Rs 14,000 crore in Gujarat, inaugurates dairy facilities, expands…

2 hours ago