After mixing ethanol in petrol, the government has started preparations to mix it in CNG also. On Thursday, the Union Cabinet approved the ₹23,731 crore Govardhan scheme. The objective of this scheme is to increase the production of compressed biogas and reduce dependence on imported fossil fuels.
Govardhan – whose full name stands for 'Galvanizing Organic Bio-Agro Resources Dhan' – is a big step forward for the Indian bio-CNG sector. This scheme will be implemented between the financial years of 2027 and 2036. Let us understand the government's plan to mix biogas with CNG.
How is compressed biogas made?
CBG (Compressed Biogas) will be made from organic waste like animal dung, crop residues, municipal waste, food waste and waste from sugar mills. After purification, its chemical composition becomes similar to natural gas. It will then be supplied through the existing CNG and PNG networks.
As a result, there will be no need to make any changes to existing infrastructure or trains. The government hopes that the new scheme will increase domestic bio-CNG production. Over the next decade, bio-CNG production is projected to increase tenfold, reducing dependence on natural gas imports.
What effect will mixing it with CNG have on cars?
Under the new scheme, it will be mandatory for city gas distribution companies to mix biogas. As per the government's targets, the blending level will be 3% in the 2026-27 financial year, which will increase to 4% next year and reach 5% by the 2028-29 financial year. The government has announced this scheme at a time when people are rapidly moving towards CNG vehicles; The market share of CNG vehicles has increased significantly in the last few years. By July 2026, the market share of CNG passenger vehicles is expected to reach 24.67%.
Since Bio-CNG is chemically similar to natural gas, it will not have any impact on existing CNG cars. Unlike mixing ethanol with petrol – which requires an E20-compliant engine – bio-CNG does not require such changes; Users will be able to use it without any hardware changes. In other words, using bio-CNG blends will not have any effect on your car.