The Union Cabinet has given its approval for the ₹23,731 crore National Circular Bioenergy Scheme, known as GOBARdhan, aiming to boost India’s production of Compressed Biogas (CBG) significantly. The initiative is set to be implemented from the financial year 2026-27 until 2035-36. GOBARdhan is focused on increasing domestic CBG production by nearly ten times, creating an integrated framework that covers the entire value chain of the biogas sector. This strategy positions CBG as an essential element of India’s clean energy mix.

Organic Recycling Systems Limited (ORSL), operating for nearly two decades in converting municipal solid waste, agricultural residue, and organic biomass into CBG and fermented organic manure, perceives GOBARdhan as a recognition of its existing efforts. The approval serves not as a preparation cue but as validation for the Company’s established capabilities and achievements.

GOBARdhan’s Impact on the Biogas Ecosystem

The GOBARdhan initiative is structured around six key growth components, including guaranteed offtake, pricing assurance, capital support, pipeline connectivity, credit guarantees, and ecosystem development. This comprehensive approach aims to unify the previously fragmented CBG ecosystem under a single national framework. A dedicated CBG Offtake Assurance is introduced, wherein City Gas Distribution (CGD) entities are expected to procure CBG to meet blending obligations, starting from three per cent in 2026-27 and rising gradually to five per cent by 2028-29.

Additionally, a stable price of ₹2,110 per MMBTU, backed by government commitment for at least ten years, provides producers with long-term revenue stability. GOBARdhan has the potential to propel the progress achieved by previous initiatives like SATAT, which has seen over 200 CBG plants commissioned throughout the country.

According to Sarang Bhand, Promoter and Managing Director of ORSL, GOBARdhan addresses major challenges faced by the CBG sector, such as demand uncertainty and access to capital. The new policy framework is designed to facilitate sectoral growth by establishing clear financial support mechanisms and obligations that enhance the viability of CBG projects.

Current Operations and Future Prospects for ORSL

With GOBARdhan establishing the conditions for growth within the CBG sector, ORSL is well-positioned due to its existing technology, project execution, and various operational capabilities. The initiative is geared towards encouraging the use of agricultural residue, cattle dung, press mud, and municipal organic waste as feedstock. ORSL is focusing its upcoming Build-Own-Operate Agro projects in regions such as Kerala, Madhya Pradesh, Chhattisgarh, and Karnataka.

The assurance of CBG procurement through CGD entities strengthens ORSL’s plans for a ₹1,000 crore Build-Own-Operate Agro Valorisation platform, which comprises five integrated CBG projects projected to yield returns over 20 per cent in states favourable to supportive policies. GOBARdhan is believed to provide explicit support for the production of fermented organic manure, an area in which ORSL has been actively involved since 2008.

Meanwhile, ORSL has been engaged in ongoing innovative efforts, supported by the GOBARdhan challenge fund, which aids technology adoption and process enhancements. ORSL’s NABL-accredited ORS Research and Innovation Centre is pursuing multiple innovations and has established research partnerships with institutions like IIT Bombay and IIT Kharagpur.

Recent Contract Wins and Operational Readiness

ORSL’s operational readiness is reflected in its recent contract awards. Solapur Bioenergy Systems Private Limited, a wholly owned subsidiary of ORSL, has secured three Engineering, Procurement, Construction, Operation, and Maintenance contracts from Bharat Petroleum Corporation Limited for CBG plants located in Mysuru, Raipur, and Kerala. The total value of these contracts is estimated between ₹250 crore and ₹275 crore.

Furthermore, the renewal of the operational and maintenance contract for the Gorakhpur CBG plant in Uttar Pradesh, initially awarded by Indian Oil Corporation Limited, underscores ORSL’s continued strong performance. Engaging with major PSU oil marketing companies demonstrates ORSL’s significant standing within the biogas sector.

Future growth plans for ORSL include transitioning to the BSE Main Board by October 2026, indicating ongoing investment in infrastructure and organisational capabilities. Comprehensive information about ORSL’s initiatives is available on their official website and the BSE portal.

Long or Short, get news the way you like. No ads. No redirections. Download Newspin and Stay Alert, The CSR Journal Mobile app, for fast, crisp, clean updates!

App Store –  https://apps.apple.com/in/app/newspin/id6746449540 

Google Play Store – https://play.google.com/store/apps/details?id=com.inventifweb.newspin&pcampaignid=web_share