From Waste to Wealth
GOBARdhan could turn organic waste into energy, fertiliser and livelihoods, but scaling the model will require more than building CBG plants.

The GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) Scheme was launched in 2018 under the Swachh Bharat Mission (Grameen) to convert cattle dung and other organic waste into useful resources. It promotes the production of biogas, Compressed Biogas (CBG) and organic manure, linking waste management with renewable energy and rural development. The scheme has gradually evolved into a broader framework for developing India’s CBG ecosystem.
GOBARdhan is significant given India’s large quantities of underutilised biomass, poor organic waste management and continued dependence on imported fossil fuels. CBG can provide a domestic renewable alternative to natural gas while creating economic value from agricultural and livestock waste.
Government measures such as CBG blending targets and long-term pricing and offtake mechanisms can also improve investment certainty. Further, bio-slurry generated through biogas production can be converted into organic fertiliser, creating potential benefits for soil health and additional income opportunities for farmers.
Economic Potential
India has large quantities of cattle dung, crop residue and other organic waste that remain underutilised. GOBARdhan converts this waste into CBG, biogas and organic fertilisers, creating economic value from previously underused resources.
This establishes a circular model in which agricultural waste becomes an input for energy production, while the resulting bio-slurry can be returned to agriculture.
India’s dependence on imported fossil fuels leaves the economy exposed to international price fluctuations and geopolitical disruptions. CBG provides a domestic renewable alternative to natural gas. Expanding domestic CBG production can diversify India’s energy mix, strengthen energy security and potentially reduce dependence on imported gas.
However, uncertainty over demand and long-term revenues has been a challenge for CBG producers. Government measures such as mandatory CBG blending targets and pricing and offtake mechanisms can create greater market certainty. Such measures can improve investor confidence and encourage private investment in CBG infrastructure.
GOBARdhan can also create new markets for cattle dung and agricultural residues. Farmers can potentially earn additional income by supplying biomass to nearby plants, while activities such as collection, aggregation, transportation and processing can generate rural employment and entrepreneurial opportunities.
The production of bio-slurry provides an additional agricultural benefit. It can be processed into organic fertiliser, creating another potential revenue stream while returning nutrients to agricultural land. Greater use of organic fertilisers can complement efforts to improve soil health and reduce, to some extent, dependence on chemical fertilisers.
Implementation Challenges
Despite its potential, the scalability of GOBARdhan depends on overcoming several implementation challenges. CBG plants require a steady and reliable supply of organic waste. Agricultural residue is dispersed across farms and is often available only during particular seasons. Collecting, storing and transporting bulky biomass can therefore increase production costs. Cattle dung is similarly dispersed across rural households and already has alternative uses. Ensuring a reliable feedstock supply is consequently essential for maintaining plant operations and financial viability.
CBG projects also involve substantial upfront investment in processing technology, storage, transportation and other infrastructure. Smaller producers and rural enterprises may face difficulties in accessing affordable finance. While government support can reduce initial investment barriers, long-term viability ultimately requires plants to generate sufficient revenues. Uncertainty surrounding feedstock costs, CBG prices and future demand may continue to discourage private investment.
Farmer participation presents another challenge. Farmers need adequate and reliable incentives to supply cattle dung and agricultural residues. Low procurement prices or delayed payments could reduce participation and weaken biomass supply chains. There is also a risk that the economic gains from the CBG value chain remain concentrated among plant operators and larger firms. FPOs, cooperatives and local enterprises can help aggregate biomass and enable greater participation by farmers.
Finally, infrastructure and market connectivity remain important constraints. Biomass resources are concentrated largely in rural areas, while major CBG markets may be geographically distant. Limited pipeline connectivity and transportation infrastructure can increase the cost of supplying CBG to consumers. Developing localised supply chains and improving connectivity between CBG plants and gas distribution networks will therefore be crucial for achieving commercial scale.
The implementation of GOBARdhan can be made more robust by establishing district-level systems for biomass mapping and collection to ensure a reliable supply of feedstock. FPOs, cooperatives and local entrepreneurs could be supported to aggregate agricultural residues and cattle dung. Along with this, transparent procurement mechanisms and timely payments should be ensured so that farmers have predictable incentives to supply biomass. In particular, the government should expand access to affordable credit and to targeted financial support (especially to MSMEs and small rural enterprises) to mitigate the burden of high upfront costs.
Investment in better pipeline connectivity and storage and transport infrastructure may also enable market expansion and reduce logistical costs. Lastly, the scheme should assess outcomes beyond the establishment of plants including CBG production, biomass use, farmer incomes, employment generation and environmental outcomes.
GOBARdhan is a significant opportunity to convert India’s organic waste problem into an instrument of energy security, rural livelihoods and sustainable agriculture. Its success, however, rests on the establishment of dependable biomass supply chains, commercially viable CBG projects and meaningful participation from farmers and rural enterprises. It would be a mistake to judge GOBARdhan’s success solely on the number of CBG plants established. Its success should instead be judged by its capacity to generate a sustainable and inclusive circular economy for India's organic resources.
(The writer is an economics postgraduate from Jawaharlal Nehru University with research interests in economic policy, trade and global governance. Views personal.)






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