Guaranteed Buyers City Gas Distribution companies are now bound by a notified CBG blending mandate — 3% in FY27, rising to 4% in FY28, and settling at 5% from FY29 onward across CNG and PNG supply. That’s a demand curve that only goes up, built into policy rather than left to the market.

Locked-In Pricing for a Decade CBG will be sold at an administered price of Rs. 2,110 per MMBTU, with the government committing to hold this framework for a minimum of 10 years. Revenue uncertainty — the single biggest reason biomass energy projects struggle to raise finance — is largely off the table.

Real Capital Support Greenfield CBG projects can access capital assistance of up to Rs. 2 crore per TPD of installed capacity, covering plant and machinery as well as feedstock aggregation and manure-processing assets. Brownfield expansions qualify too.

Infrastructure That Gets You to Market Funding is available for both cluster-based and standalone pipelines linking CBG plants to trunk lines and CGD networks — directly cutting evacuation cost, which has historically eaten into plant economics.

Easier Access to Institutional Finance A dedicated credit guarantee mechanism is built specifically for MSME-scale CBG projects, opening the door for first-time developers, cooperatives and women entrepreneurs who previously struggled to get lenders on board.

District-Level Groundwork A CBG Ecosystem Challenge Fund will support feedstock mapping, aggregation infrastructure and technology adoption at the district level — the unglamorous groundwork that usually decides whether a project actually works.

The Scale of Ambition Government’s own target: nearly a 10x jump in domestic CBG production, building on what SATAT, the MDA Scheme, the Biomass Aggregation Machinery Scheme and prior CFA support have already achieved — over 200 CBG plants commissioned so far.

What This Means in Practice Feedstock aggregators, pellet and briquette suppliers, cooperatives, MSMEs and rural entrepreneurs now have something that didn’t exist before: a bankable, de-risked entry point into the CBG value chain, backed by clear pricing, real financing support and demand that’s assured by policy rather than promised in principle.

How KIP Financial Helps You Capture This

We work with promoters, cooperatives and rural entrepreneurs looking to move from interest to investment in the biomass and CBG space — end to end, from feasibility to financial closure:

• Site & State Viability Reports (SVR) for CBG and biomass projects
• Detailed Project Reports (DPR) with 7-year financial projections
• Subsidy identification, mapping and filing support — both central and state
• Business registration and statutory/GST compliance support
• Structuring support for capital assistance and credit guarantee applications under schemes like GOBARdhan

If you’re weighing a CBG, biomass pellet, or organic waste-to-energy project and want the numbers worked out before you commit capital, we’re glad to walk through it with you.