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Gas›GOBARdhan Scheme can help reduce gas imports by $5 billion, says IBA The Economic Times daily newspaper is
available online now. Read Today's Paper GOBARdhan Scheme can help reduce gas imports by $5 billion, says
IBASECTIONSGOBARdhan Scheme can help reduce gas imports by $5 billion, says IBABy PTILast Updated: Aug 09, 2026,
11:43:00 AM ISTRate StoryFollow usShareFont SizeAbcSmallAbcMediumAbcLargeSavePrintCommentSynopsisThe GOBARdhan Scheme is
expected to significantly reduce India's gas import bill. This initiative aims to convert organic waste into clean
energy sources. The scheme will also decrease fertilizer imports and subsidy burdens for the nation. It is projected to
create numerous employment opportunities in rural areas.The GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan)
scheme was approved by the Cabinet as a National Unified Scheme for Compressed Biogas (CBG) with a total financial
outlay of ₹23,731 croreNew Delhi, Indian Biogas Association (IBA) on Sunday said it expects a USD 5 billion reduction
in the gas import bill due to the government's Rs 23,731-crore GOBARdhan Scheme, a circular bioenergy initiative to
convert organic waste like agricultural and cow dung into clean energy.According to an IBA statement, the recently
approved GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) with a financial outlay of Rs 23,731 crore, should be
viewed as a strategic national investment rather than a public expenditure.Its returns extend well beyond the bioenergy
sector, generating measurable economic, environmental and social dividends through import substitution, rural
development and improved agricultural productivity, it stated.The largest economic payback will arise from reduced
natural gas imports. India imports a significant amount (50 per cent) of its natural gas requirements, which exposes the
Indian economy to volatile international prices and geopolitical risks.In FY 2024 -25, the LNG import bill accounted for
USD 15.2 billion (approximately Rs 1.28 lakh crore, assuming an average exchange rate of Rs 84/USD), and though the FY25
- 26 data is not yet published, it is surely a sharp jump over the previous year, owing to the prolonged West Asia
crisis and plummeting INR against USD, according to the association..Live EventsEven with a conservative estimate of
1500 fully functional CBG plants in the forthcoming years, the trade deficit on account of natural gas import shall be
at least diminished by one-third of its current level, i.e. USD 5 billion (approximately Rs 40 lakh crore).Another
significant source of payback is the reduction in fertiliser imports and subsidy burden. CBG facilities produce
Fermented Organic Manure (FOM) and liquid bio-slurry rich in essential plant nutrients. Their use supplements chemical
fertilizers, particularly imported phosphatic and potassic fertilizers, while reducing dependence on subsidized urea. It
stated that lower fertiliser imports and subsidy requirements translate into significant fiscal savings, making the
scheme economically self-reinforcing.In FY 24-25, fertiliser import bill accounted for USD 18 billion (approximately Rs
1.5 lakh crore). With the estimated 1500 functional CBG plants and adoption of Good Agricultural Practices (optimal
blend of synthetic and organic manure), at least 5 per cent of the imports can be reduced, translating into a
contribution to the reduction in the Current Account deficit by USD 1 billion.The scheme also delivers significant
employment generation opportunities, more particularly in the rural areas, thus stimulating local economies and creating
skilled as well as semi-skilled livelihoods.GOBARdhan can transform agricultural residues into income-generating assets
for farmers. Healthier soils require lower chemical inputs and ensure a sustainable increase in crop quality. The
environmental payback is equally substantial as setting up CBG plants discourages open burning of biomass, a major
contributor to air pollution, more apparent and revealing in the NCR region.Indian Biogas Association (IBA) is the first
and largest nationwide and professional biogas association for stakeholders of the biogas industry, including technology
providers, project developers, plant operators and planners of biogas plants, and representatives from public policy,
science and research in India.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic
Times WhatsApp channel)Read More News onGOBARdhan SchemeIndian Biogas Associationbiogasclean energygas imports
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