Explainer The Greentrepreneur Series · #009 · Energy Transition · By Darshan Parikh · October 2026 · 5 min read

Only 217 of India's 1,908 biogas plants are running. Why?

Farm waste is already there. Nearly half of India's gas is imported. What is missing is the plant that turns the waste into fuel.

Every dairy, farm and kitchen makes the raw material every day. The question is why so much of it still goes to waste.

The answer is not a lack of waste or a lack of rules. It is that most of the plants exist only on paper.

Key numbers

1,908Registered biogas plants
217Plants running
339Plants being built
nearly halfShare of India's natural gas that is imported
3%, rising to 5% from 2028-29Biogas blending by gas companies, 2026-27
about ₹105 per kgPrice for compressed biogas, with 10 years of revenue assurance

Sources: Press Information Bureau, GOBARdhan scheme note (Aug 2026); Indian Infrastructure (Dec 2023); Drishti IAS (Jun 2026).

Why are most plants not running?

India has 1,908 biogas plants registered. Only 217 are running today. The government counts 339 more being built.

That leaves 1,352 plants that are registered but not yet started. Registration is the first step, not the finished plant.

Most of these plants are on a list. The list is not fuel.

How does a biogas plant work?

A biogas plant is a sealed tank. Dung, crop waste and food scraps go in. Microbes break the waste down with no air, and gas comes out. The leftover slurry becomes fertiliser.

The gas is mostly methane. Once it is cleaned and compressed, it is called compressed biogas, or CBG. CBG can run through the same pipes and pumps as natural gas, and it can fuel vehicles and homes.

Why does India need this gas?

Nearly half of India's natural gas is imported. Every import is money that leaves the country, and a supply that can be cut off.

Farms, dairies and kitchens make the raw material every day. The gas is already being made, just not captured.

The story in 10 slides

Slide 1 of the #009 Biogas carouselSlide 2 of the #009 Biogas carouselSlide 3 of the #009 Biogas carouselSlide 4 of the #009 Biogas carouselSlide 5 of the #009 Biogas carouselSlide 6 of the #009 Biogas carouselSlide 7 of the #009 Biogas carouselSlide 8 of the #009 Biogas carouselSlide 9 of the #009 Biogas carouselSlide 10 of the #009 Biogas carousel

What does the government ask of gas companies?

Gas companies must blend biogas into the gas they sell. The share is 3% in 2026-27, rising to 5% from 2028-29.

The rule was decided in November 2023, so the plants have a buyer on the way. By June 2026 blending had reached nearly 2%, on the way to the 3% target.

City gas firms have a separate duty. They must blend from 1% in FY26 to 5% from 2028-29.

What does a plant builder get?

The scheme sets a price of about ₹105 per kg for compressed biogas, backed by 10 years of revenue assurance.

That gives a plant builder a buyer for the gas and a price for ten years. It is the piece that makes a plant a business rather than a grant.

What is missing?

The rules and the price are set. The next step is plants that run, not just plants on a list.

That means checking that registered plants are built, supplied with waste, and connected to a buyer. It is a job for builders, farmers and gas firms together.

Who makes it happen?

  • Farms and dairies. They supply the raw material and take back the fertiliser.
  • Plant builders. The scheme gives them a buyer and a fixed price.
  • Gas companies. They must blend biogas into what they sell.

What it takes to run a plant

  • Raw material. Dung, crop waste and food scraps go into a sealed tank, and farms and dairies make them every day.
  • A running plant. Registration is only the first step, so the plant must be built and supplied with waste.
  • A fixed price. The scheme sets about ₹105 per kg for compressed biogas, backed by 10 years of revenue assurance.
  • A buyer. Gas companies must blend biogas into the gas they sell, which gives plants a buyer on the way.

Farmers, plant builders and gas firms all have a part to play.

Most of these plants are on a list.

The raw material is already on every farm. What is missing is the plant that turns it into fuel.

The Greentrepreneur Series · You are on #009 of 10

Questions

How many biogas plants are running in India?

India has 1,908 registered biogas plants. Only 217 are running today.

What is compressed biogas?

It is biogas that has been cleaned and compressed. It can run through the same pipes and pumps as natural gas.

What does the government ask of gas companies?

They must blend biogas into the gas they sell. The share is 3% in 2026-27, rising to 5% from 2028-29.

Sources

Corrections: none so far. Found a mistake? Email me and I will fix it and note it here.

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