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Biogas sector likely to attract over Rs 5,000 crore investments in FY27 on growing CBG pipeline: IBA
Dec-22-2025

The Indian Biogas Association (IBA) has said that the biogas sector in India is likely to attract over Rs 5,000 crore investments during the financial year 2026-27, driven by growing compressed biogas (CBG) pipeline and strong interest from investors and stakeholders this calendar year (2025). As of now, over 100 CBG plants have been commissioned in India.  

Citing government data, the association said 94 CBG plants sold more than 31,400 tonne of CBG during FY25, which is a tangible proof of growth, and market uptake. It said there is also ample scope for efficiency improvement and capacity utilization in the several million small-scale traditional biogas digesters, and the country programs are scaling up support for the various medium-sized plants which offer the benefits of cleaner cooking fuel, rural employment and organic manure. Looking ahead, the IBA expects significant commissioning of CBG facilities, effective and organized supply chains for feedstock, and unified and integrated policy frameworks to support the rapid adoption of biogas. 

IBA Chairman, Gaurav Kedia, has said ‘the relaxed GST regime is going to augur ease of doing business in the CBG ecosystem. We anticipate that a reduction of 7 per cent in the applicable GST rate for CBG sector shall significantly improve project viability, and the direct impact would translate into 4-5 per cent increase in new investments in the industry over the short to medium term.’ He also said indirectly across the industry value chain, the multiplier effect would be much larger. He added that the CBG industry is projected to reach a size of $3-4 billion by 2026 and grow further to around $5 billion by 2030.

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