PNN
New Delhi [India], September 30: The Union Cabinet has approved a ₹23,731 crore National Circular Bioenergy Scheme and several of the capabilities targeted by GOBARdhan are already part of ORSL's operating and technology platform.
The Union Cabinet has approved GOBARdhan, India's National Unified Scheme for Compressed Biogas, with a total outlay of ₹23,731 crore, to be implemented from FY 2026-27 to FY 2035-36. The scheme aims to increase domestic CBG production nearly ten-fold by providing an integrated framework covering the entire value chain, while establishing CBG as a major component of India's clean energy mix.
For Organic Recycling Systems Limited, an integrated CleanTech and decarbonisation platform that has been converting municipal solid waste, agricultural residue, and organic biomass into Compressed Biogas and Fermented Organic Manure for nearly two decades, the approval of GOBARdhan is not a signal to prepare. It is a validation of what the Company has already built.
What GOBARdhanMeans for the Sector?
GOBARdhan is structured around six growth engines covering assured offtake, pricing, capital support, pipeline connectivity, credit guarantees, and ecosystem development, consolidating the previously fragmented CBG ecosystem under a unified national framework. The scheme establishes a dedicated CBG Offtake Assurance framework, with City Gas Distribution entities procuring CBG to meet blending obligations of 3 per cent in FY 2026-27, 4 per cent in FY 2027-28, and 5 per cent from FY 2028-29 onwards in CNG and PNG segments. A stable administered CBG price of ₹2,110 per MMBTU, backed by a government-supported pricing framework with a minimum ten-year horizon, will provide long-term revenue visibility for producers.
Together with SATAT and other preceding initiatives, over 200 CBG plants have been commissioned, with GOBARdhan designed to take this progress to national scale.
“The GOBARdhan 2.0 Scheme addresses CBG sector’s two biggest bottlenecks; demand uncertainty and capital access. The mandatory CGD offtake obligations, a stable 10-year administered price, and layered financial support (capital assistance, pipeline funding, and credit guarantees for MSMEs) has created a coherent framework to move CBG projects to investable asset category. The new policy will act like a catalyst in enabling well-structured, secured and performance-focused sectoral development.”
— Sarang Bhand, Promotor and Managing Director, Organic Recycling Systems Limited
Where ORSL Stands
GOBARdhan is creating the policy and commercial conditions for the next phase of CBG growth. ORSL already has technology, project execution, O&M, CBG, organic manure and R&D capabilities that participate in several parts of this value chain.
On feedstock, GOBARdhan targets agricultural residue, cattle dung, press mud, and municipal organic waste. ORSL is currently targeting Kerela, Madhya Pradesh, Chhattisgarh and Karnataka for its upcoming BOO Agro projects expansion.
On offtake, GOBARdhan's assured procurement framework through CGD entities directly strengthens the commercial case for ORSL's Board-approved ₹1,000 crore Build-Own-Operate Agro Valorisation platform, five integrated CBG projects targeting returns upward of 20 per cent, selectively pursued in states with supportive policy frameworks.
On organic manure, GOBARdhan includes explicit support for the Fermented Organic Manure value chain, a product ORSL has been producing and selling alongside CBG since 2008, and one that the Company has publicly advocated for through a dedicated thought leadership campaign on FOM market development.
On technology, GOBARdhan's ecosystem challenge fund supports technology adoption and process improvement, areas where ORSL's NABL-accredited ORS Research and Innovation Centre, with 7+ innovations in its pipeline and active research partnerships with IIT Bombay and IIT Kharagpur, is already actively engaged.
PSU Contracts: The Proof in Practice
This operational readiness is already translating into contract wins. Solapur Bioenergy Systems Private Limited (SBESPL), a wholly owned subsidiary of ORSL, has secured three Engineering, Procurement, Construction, Operation and Maintenance (EPCOM) contracts from Bharat Petroleum Corporation Limited (BPCL) for CBG plants across Mysuru, Raipur and Kerala. Together, these projects represent a contract value in the range of ₹250–₹275 crore.
In addition, SBESPL's O&M contract with Indian Oil Corporation Limited for the Gorakhpur paddy straw-based CBG plant in Uttar Pradesh was renewed for a second consecutive term in August 2026, reflecting sustained operational performance during the preceding contract period. These engagements with two of India's largest PSU oil marketing companies, across multiple states and project types, are the clearest available measure of ORSL's standing in the sector.
"GOBARdhan is the policy framework that India's CBG sector has needed for years. It addresses the entire value chain — offtake, pricing, capital, infrastructure, and manure, rather than just one part of it. For a company like ORSL that has been operating across this value chain since 2008, the policy is now finally complementing what the technology and the operations have long been capable of delivering."
— Pankaj Tanwar, CEO – Bioenergy, Organic Recycling Systems Limited
On its way to growth, the Company is committed to transitioning to the BSE Main Board by October 2026. Further information is available at www.organicrecycling.co.in and www.bseindia.com (Scrip Code: 543997).
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