India’s biogas sector is expected to attract investments exceeding ₹5,000 crore in the fiscal year 2026-27, buoyed by strong investor interest and expanding compressed biogas (CBG) infrastructure, the Indian Biogas Association (IBA) said.
Investor interest and CBG expansion
The IBA attributes the projected investment growth to heightened interest from investors and stakeholders this year, alongside the commissioning of more than 100 CBG plants across the country. According to government data, 94 CBG plants sold over 31,400 tonnes of CBG during FY 2024-25, providing strong evidence of market uptake and sector expansion.
Policy support boosting biogas adoption
The association expects that unified and integrated policy frameworks, as well as effective supply chains for feedstock, will further accelerate rapid biogas adoption. Enhanced incentives and streamlined regulations are anticipated to improve project viability and strengthen investor confidence in the sector.
Growth beyond traditional digesters
While India has millions of small-scale traditional biogas digesters, there is significant scope to improve efficiency and capacity utilisation. Country programmes are increasingly supporting medium-sized plants that deliver cleaner cooking fuel, generate rural employment and provide organic manure, according to the IBA.
Bioenergy infrastructure and installed capacity
Over the past decade, the bioenergy sector has seen substantial growth, with a total of 2,361 MW of biomass power projects and 228 MWe of waste-to-energy capacity installed nationwide. Additionally, approximately 2.88 lakh biogas plants have been established to promote sustainable energy solutions
