India lays the foundations for an industrial biogas economy
India is moving decisively towards building an industrial-scale biomethane economy.
The catalyst is the new GOBARdhan National Circular Bioenergy Scheme, approved in August with a ₹23,731 crore (around US$3 billion) outlay over 10 years. Its significance lies not only in its scale, but in its breadth.
GOBARdhan brings agricultural residues, crop waste, animal manure, food and other biodegradable organic wastes into a common framework for producing compressed biogas (CBG/biomethane) and biofertilisers.
This creates the conditions for biomass to become a commercial feedstock industry. In regions dominated by rice production, for example, the aggregation of paddy straw can become an organised supply chain, turning a seasonal waste-management problem into a predictable source of energy. Elsewhere, dairy manure, sugar-industry residues, municipal organics and other agricultural wastes can support different plant models.
The Suzuki Effect
The policy is being reinforced by international and corporate investment. At the July India-Japan summit, the two countries launched the Japan-India CBG Initiative, supporting India’s ambition to develop 1,000 biogas plants and create a market for 2.5 million CNG vehicles powered by biogas. Crucially, the initiative is designed around cooperatives, linking India’s extensive agricultural networks with Japanese technology, investment and industrial expertise.
This is where the Suzuki effect becomes particularly important. By linking CBG production directly to vehicle manufacturing and fuel demand, Suzuki is helping create the missing connection between the farm, the biogas plant and the vehicle forecourt. The objective is no longer simply to produce renewable gas; it is to establish a domestic mobility fuel ecosystem with a sufficiently large and dependable market to attract industrial capital.
Farmer Forecourts
The emerging model could transform the role of the farmer. Rather than being simply a producer of agricultural waste, the farmer can become a participant in a local biomass economy – supplying feedstock, receiving value for residues and manure, and ultimately accessing energy and fertiliser produced from those resources.
GOBARdhan provides the scale. The India-Japan partnership provides international technology and investment. And companies such as Suzuki provide the demand.
Together, they are creating something India’s biogas sector has long needed: an integrated commercial chain from biomass collection to the vehicle forecourt.
The first deep dive into the Ministry of Petroleum and Natura Gas’s GOBARdhan policy will take place at the World Biogas Association INDIA Congress, 8-9 October 2026 in New Delhi, where ministry representatives will present the policy details and address questions from delegates.
