CBG procurement price fixed at ₹2,110/MMBtu under GOBARdhan

CBG pricing under GOBARdhan: what happened?

Compressed biogas plants under the GOBARdhan scheme need a steady, viable price to operate sustainably. The worry was that a higher price would raise CNG and kitchen PNG bills, and the Ministry set out why it will not.

• Under GOBARdhan, the CBG procurement price is fixed at ₹2,110/MMBtu, up ~43% from ~₹1,478 (linked to 85% of CNG retail price); the Government says consumers will not bear the full increase [PIB].

Why is the consumer impact small?

• The ₹2,110 is the price paid to producers, not to consumers.
• Government support of ₹10 per kg is funded by the Government, not recovered from consumers.
• CBG is pooled with domestic natural gas; earlier its cost was spread only over APM gas for CNG (Transport) and PNG (Domestic).
• Now the net cost is spread over a domestic gas base 2.5 to 3 times larger.

What is the balance sought?

• Producers get a stable, viable price.
• Consumers are protected by support and a wider pool.

What can Prelims ask on CBG pricing under GOBARdhan?

• GOBARdhan: CBG price ₹2,110 per MMBtu; support ₹10/kg (about ₹215/MMBtu) for 95% methane CBG.
• Old CBG price linked to 85% of CNG retail price.