Investor interest in the country’s expanding biogas sector is expected to grow steadily in 2026-27, with funds amounting to ₹5,000 crore likely to be pumped in, said Indian Biogas Association (IBA) in a statement.
Until now, more than 100 compressed biogas (CBG) plants have been commissioned, and 94 CBG plants sold more than 31,400 tonne of CBG during FY 2024-25, shows government data.
“This is tangible proof of growth and market uptake,” the association said.
Gaurav Kedia, Chairman, IBA, said relaxations in the GST regime, as affected by the Finance Ministry in September, 2025, will further help improve the ease of doing business.
“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 said.
Also Read: Mitsubishi enters biogas market with minority stake in KIS Group
Kedia expects the CBG industry size to soar to roughly USD 3-4 billion in 2026, and reach approximately USD 5 billion by 2030.
The IBA also anticipates significant commissioning of CBG facilities, effective and organised supply chains for feedstock, and unified and integrated policy frameworks to support the rapid adoption of biogas.
Additionally, there lies ample room for efficiency improvement and capacity utilisation in the several million small-scale traditional biogas digesters, and the country programmes are scaling-up support for the various medium-sized plants which offer the benefits of cleaner cooking fuel, rural employment and organic manure.
IBA is the first and largest nationwide and professional biogas association for stakeholders of the biogas industry including technology providers, project developers, plant operators and planners of biogas plants, and representatives from public policy, science and research in India.
Follow us
