GOBARdhan Scheme Could Slash India's Gas Import Bill By $5 Billion, Says Biogas Industry Body

The Rs 23,731 crore GOBARdhan initiative could lower India's natural gas import costs by nearly $5 billion. The Indian Biogas Association highlights its potential to cut energy and fertilizer import bills.

The central government's approved Rs 23,731 crore 'GOBARdhan' scheme holds the potential to serve as a transformative national investment rather than a standard budgetary expense. According to the Indian Biogas Association (IBA), this initiative focused on transforming agricultural waste, cattle dung, and organic refuse into clean energy could help trim India's natural gas import bill by roughly $5 billion in the coming years.

Reducing Energy Import Dependence and Trade Deficit
India currently relies on overseas supplies for nearly 50 percent of its natural gas requirement. This heavy dependency exposes the national economy to global price volatility and geopolitical disruptions. Official figures show that during the 2024-25 financial year, the nation's LNG import bill reached approximately $15.2 billion.

Projections from the IBA suggest that if around 1,500 Compressed Biogas (CBG) plants operate at their full functional capacity across the country, the trade deficit linked to natural gas imports could drop by nearly one-third. This operational shift is estimated to unlock savings of around $5 billion (approximately Rs 40 lakh crore), providing a strong buffer to India's foreign exchange reserves.

Cutting Fertilizer Import Costs and Current Account Deficit
The benefits of the GOBARdhan scheme extend beyond the energy matrix into the agricultural sector. In FY 2024-25, India spent nearly $18 billion on fertilizer imports, which significantly escalated the government's subsidy burden. By generating organic bio-fertilizer outputs from CBG units and encouraging sustainable farming practices, the nation can curtail its reliance on imported chemical fertilizers.

The industry body estimates that fully functioning 1,500 CBG plants could reduce total fertilizer imports by at least 5 percent. A cut of this magnitude is anticipated to lower the current account deficit by about $1 billion, delivering tangible fiscal relief to the country's macro economy.

Spurring Rural Jobs and Localized Economic Growth
Beyond fiscal numbers, the GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) program offers deep social and economic advantages for India's hinterlands. Establishing supply chains for collecting, handling, and processing agricultural residue and organic waste creates distributed employment networks.

The deployment of these biogas infrastructure projects will generate job openings for both skilled and semi-skilled workers in rural regions. This decentralized industrial growth will boost local incomes, foster rural entrepreneurship, and clean up the environment through effective waste management.

What this means for you
Across India: Cutting natural gas and fertilizer import bills will narrow the national current account deficit and bolster the country's overall trade balance.

In Rural Areas: Establishing CBG units and organic waste processing networks will unlock fresh job opportunities for skilled and semi-skilled workers locally.

Questions & Answers

1. What is the outlay approved for the GOBARdhan scheme?
The government has approved a budget of Rs 23,731 crore for the GOBARdhan initiative.

2. How much can India save on gas imports according to the IBA?
The IBA estimates that operating 1,500 CBG plants at full capacity could reduce natural gas import expenses by around $5 billion.

3. How much of its natural gas needs does India import currently?
India imports approximately 50 percent of its total natural gas requirement.

4. What were India's LNG and fertilizer import bills in FY 2024-25?
In FY 2024-25, India spent around $15.2 billion on LNG imports and approximately $18 billion on fertilizer imports.

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