Negative impactEconomy
CBG plant capacity utilisation in India low at around 35%: IEA
BusinessLine 8 hrs ago·11 Nov 2026, 9:11 am
The International Energy Agency (IEA) reports that India's compressed biogas (CBG) sector is operating at a low capacity utilisation of about 35%. This indicates that the country is not producing enough biogas to meet its energy goals. The primary reasons for this underutilisation are difficulties in securing consistent feedstock, managing storage, and navigating complex logistics. These operational hurdles are currently delaying the expansion of new plants.
This situation matters for investors because it highlights a significant gap between India's ambitious renewable energy targets and the current ground reality. While the sector faces headwinds, it remains a key focus area for government policy. The government is actively working to address these supply chain issues to unlock the sector's potential.
Investors should watch for updates on the implementation of the Gobardhan scheme. This initiative, with a substantial budget, aims to drive nearly tenfold growth in CBG production by FY36. Progress in resolving feedstock and logistics constraints will be critical for the sector to move from low utilisation to high-scale production.
Excerpt from BusinessLine
Feedstock, storage and logistics constraints delay expansion; Gobardhan scheme with ₹23,700 crore budget aims for nearly tenfold production growth by FY36 The capacity utilisation at the compressed biogas (CBG) plants in India is low at around 35 per cent due to various factors including difficulties in procuring…Read the original at BusinessLine
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- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
- Assessed as a significant, market-relevant update.
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