₹2 Crore Per TPD: Breaking Down GOBARdhan Capital Assistance for CBG Projects

Shree Narayan Engineering Pvt. Ltd. is a leading manufacturer and turnkey solution provider of Bio-CBG, biogas and waste-to-energy plants, executing projects across India from our base in Gujarat.

Of everything contained in the GOBARdhan National Circular Bioenergy Scheme, one provision receives more attention than the rest: capital assistance of up to ₹2 crore per tonne per day of installed capacity. It is a straightforward sentence that carries considerable weight, and it deserves closer examination than a headline permits. This article sets out how the provision is structured, what it covers, and what promoters should verify before relying on it.

The Basis of Calculation

The Union Cabinet approved GOBARdhan on 6 August 2026 with an outlay of ₹23,731 crore, for implementation from FY 2026-27 to FY 2035-36 under the Ministry of Petroleum and Natural Gas.

GOBARdhan capital assistance is calculated against installed CBG capacity rather than against project cost. The distinction matters:

Installed Capacity	Indicative Capital Assistance
2 TPD	Up to ₹4 crore
5 TPD	Up to ₹10 crore
10 TPD	Up to ₹20 crore

Because the assistance scales with capacity, the figure is predictable at the concept stage — a promoter can establish the indicative ceiling before a Detailed Project Report is prepared. It also means that capacity sizing is the single most consequential technical decision in the project, since it determines both the plant's output and the assistance available to it.

What the Assistance Covers

This is the point most commonly misread. CBG capital assistance per TPD under GOBARdhan is not restricted to the digester and purification train. The scheme extends support beyond core plant machinery to:

• Feedstock aggregation infrastructure — the collection, handling and storage assets that keep a plant supplied through the year
• Organic manure processing — equipment converting digestate into fermented organic manure
• Value-addition infrastructure — assets that improve the commercial return from plant output

Expansion projects are eligible in addition to greenfield ones, which is relevant to operators already running capacity and considering scale-up.

The breadth of the eligible cost base is significant. Earlier support programmes concentrated narrowly on the plant itself, leaving promoters to fund the surrounding infrastructure that determines whether a plant actually runs at capacity. Feedstock logistics has historically been the reason many CBG plants underperform, and its inclusion here addresses a real operational weakness rather than an accounting one.

What Capital Assistance Sits Alongside

Capital assistance is one component of a wider framework, and evaluating it in isolation gives an incomplete picture of CBG project subsidy India offers. GOBARdhan also provides:

• Assured offtake, linking each plant to a buyer through the City Gas Distribution or trunk pipeline network, supported by a notified blending obligation of 3% in FY 2026-27, 4% in FY 2027-28 and 5% from FY 2028-29 onwards
• An administered CBG price of ₹2,110 per MMBTU under a government-backed pricing framework
• A credit guarantee mechanism for MSME-led projects, improving access to institutional finance
• Pipeline connectivity funding and a CBG Ecosystem Challenge Fund for district-level implementation

For Gujarat-based promoters, the state Biotechnology Policy 2022-27 adds a further capital subsidy at 25% of eligible gross fixed capital investment and an Up to a 7% interest subsidy on term loans, available until 31 March 2027.

Points to Verify Before Relying on the Figure

• Eligibility and sanction. The stated amount is a ceiling, not an entitlement. Actual assistance follows scheme guidelines and sanctioning decisions.
• Capacity substantiation. Assistance is capacity-linked, so installed capacity must be technically justified and supported by feedstock availability.
• Stacking limits. Where state assistance is also sought, incentive ceilings under the state policy govern how far support can be combined on the same expenditure.
• Entity constitution. State-level eligibility in Gujarat requires the applicant to be a Company or a Limited Liability Partnership.

Why Choose Narayan Energy

Capacity-linked assistance rewards accurate sizing, and accurate sizing depends entirely on the quality of the feedstock assessment beneath it — a plant specified for capacity it cannot feed will fall short on both output and returns regardless of the assistance sanctioned. Shree Narayan Engineering Pvt. Ltd. operates as a turnkey compressed biogas plant manufacturer and project partner, covering feedstock assessment and feasibility, digester and purification system design, execution, commissioning and long-term operational support. We prepare Detailed Project Reports capable of satisfying both lenders and sanctioning authorities, and assist with documentation across central and state schemes. Our clients include dairy cooperatives, sugar mills, municipal bodies, agri-processors and private investors entering the sector.

Conclusion

Capital assistance of up to ₹2 crore per TPD gives CBG promoters a predictable, capacity-linked basis for early project evaluation, and its extension to feedstock aggregation, manure processing and value-addition infrastructure broadens the eligible cost base considerably. Read alongside assured offtake, an administered price and credit guarantee support, it forms part of a framework designed to make projects bankable rather than merely announced. Correct capacity sizing remains the decisive variable. Shree Narayan Engineering Pvt. Ltd. helps promoters establish that figure accurately and progress from assessment to commissioning.

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