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The Indian Biogas Association (IBA) reports that the excise duty waiver on compressed biogas (CBG) blended with compressed natural gas (CNG) in the Union Budget 2026 could unlock investments of up to ₹1 lakh crore. A 5% blending level nationwide could require 2.5-3 MMTPA of CBG, leading to investments of ₹45,000-55,000 crore.

If blending reaches 7-8% by 2032, the investment potential may double. The policy aims to enhance energy security, reduce greenhouse gas emissions, and improve financial viability for CBG projects.