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Cabinet Clears ₹32,701 Crore Push for Green Energy and Strategic Infrastructure

Cabinet Clears ₹32,701 Crore Push for Green Energy and Strategic Infrastructure

In a significant boost to India's clean energy transition and infrastructure development, the Union Cabinet has approved two major projects with a combined investment of ₹32,701 crore. The decisions include the launch of the ambitious GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) Scheme with a budgetary support of ₹23,731 crore and the construction of a 135.87-km four-lane highway from Baihata Chariali to Tezpur in Assam at a cost of ₹8,970 crore.

GOBARdhan Scheme to Strengthen India's Energy Security

The GOBARdhan Scheme has been designed to accelerate domestic production of Compressed Bio-Gas (CBG) while reducing India's dependence on imported natural gas. According to the Cabinet briefing, India currently imports nearly half of its natural gas requirements, while recent geopolitical disruptions in the Strait of Hormuz have exposed vulnerabilities in the country's energy supply chain. The scheme seeks to address these challenges by promoting bio-gas production from organic waste and agricultural residues.

The scheme rests on six major pillars—assured offtake, price stability, capital support, pipeline infrastructure, credit guarantee, and an innovation challenge fund. Every CBG plant will be linked to a buyer through the City Gas Distribution network or trunk pipelines, while government-backed pricing will shield producers and buyers from fluctuations in global fuel prices. Capital assistance of up to ₹2 crore per tonne-per-day capacity will be provided for setting up plants and processing infrastructure. MSME-led projects will also receive credit guarantees covering up to 85 per cent of eligible loans.

The government expects the initiative to transform the bio-gas ecosystem over the next decade. CBG production is projected to increase tenfold, attract substantial private investment, reduce fossil fuel imports, save more than ₹40,000 crore in foreign exchange, generate over 1.5 lakh jobs, produce 250 million metric tonnes of organic fertiliser, and cut more than 40 million tonnes of carbon dioxide emissions by diverting organic waste from landfills.

Assam Highway to Boost Connectivity and Defence Logistics

The Cabinet also approved the construction of a 135.87-km access-controlled four-lane highway from Baihata Chariali near Guwahati to Mission Chariali near Tezpur along National Highway-15. The project, estimated to cost ₹8,970 crore, will be developed under the Build-Operate-Transfer (BOT) Toll model and will employ Automated and Intelligent Machine-aided Construction (AIMC) technology to improve construction quality and precision. Advanced Traffic Management Systems and open tolling provisions will also be incorporated.

Strategically, NH-15 connects Guwahati with Tezpur and further links important road corridors leading towards Arunachal Pradesh, the proposed Brahmaputra tunnel, and the Frontier Highway. The project includes 15 major bridges, 30 minor bridges, 19 flyovers, and five bypasses spanning nearly 59 kilometres.

The government expects the new corridor to significantly reduce travel time between Guwahati and Tezpur from around 3.5 hours to 1.7 hours, ease congestion on NH-27, facilitate faster movement of freight, improve connectivity to defence installations in Tezpur, and strengthen links with key economic centres in Assam and Arunachal Pradesh. The project will also support regional trade, agriculture, and industrial growth while enhancing strategic mobility in the Northeast.

Part of a Larger Infrastructure Push

The latest approvals form part of the Centre's broader infrastructure strategy under NDA 3.0, which includes investments in highways, railways, metro systems, airports, ports, power projects, housing, industrial corridors, and high-tech manufacturing. The twin decisions underscore the government's emphasis on combining economic growth with sustainability, energy self-reliance, and improved regional connectivity.

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