GOBARdhan can cut gas imports by $5 bn: IBA

The Indian Biogas Association (IBA) anticipates a significant reduction in the country's gas import bill, amounting to $5 billion, due to the implementation of the GOBARdhan Scheme. This circular bioenergy initiative, with a budget of Rs 23,731 crore, aims to convert organic waste such as agricultural and cow dung into clean energy.

IBA emphasizes that GOBARdhan should be viewed as a strategic national investment rather than a public expenditure, as its returns extend far beyond the bioenergy sector, generating economic, environmental, and social dividends through import substitution, rural development, and improved agricultural productivity.

The primary economic gain from GOBARdhan lies in reduced natural gas imports. India currently imports 50% of its natural gas requirements, leaving the economy vulnerable to volatile international prices and geopolitical risks. In FY 2024-25, the LNG import bill was $15.2 billion (approximately Rs 1.28 lakh crore), and is expected to increase further owing to the prolonged West Asia crisis and the weakening Indian Rupee against the US Dollar.

Even with a conservative estimate of 1,500 fully functional Combined Biogas Plants (CBG) in the coming years, the trade deficit from natural gas imports could be reduced by at least one-third, amounting to a $5 billion (approximately Rs 40 lakh crore) decrease.