Government Approves Major Investments in Bio-Gas and Highway Projects

In a recent cabinet meeting led by Prime Minister Narendra Modi, the Indian government approved two major initiatives aimed at boosting energy security and infrastructure. The GOBARdhan scheme, with an investment of ₹23,731 crores, focuses on enhancing the production of compressed biogas, while an ₹8,970 crore highway project in Assam aims to improve connectivity and reduce travel time. These initiatives are expected to significantly impact the economy, create jobs, and promote sustainable energy solutions. Read on to discover the details of these transformative projects.

By Narendra Chaudhary Aug 6, 2026, 17:50 IST

Cabinet Meeting Led by Prime Minister Modi

In a significant cabinet meeting chaired by Prime Minister Narendra Modi, two major decisions were made today. Information and Broadcasting Minister Ashwini Vaishnaw announced that the government has approved two substantial investments totaling ₹32,701 crores. This includes the GOBARdhan scheme, which is allocated ₹23,731 crores, and the construction of a four-lane highway from Baihata Chariali to Tezpur in Assam, costing ₹8,970 crores.

Objectives of the GOBARdhan Scheme

Vaishnaw explained that the GOBARdhan initiative aims to enhance the production and distribution of compressed biogas (CBG) in the country, thereby strengthening energy self-sufficiency. The government highlighted that India relies on imports for nearly 50% of its natural gas needs, and recent geopolitical developments have posed new challenges to energy security. In this context, domestically produced biogas is seen as a sustainable solution.

Key Features of the Scheme

The minister outlined that the scheme is built on six key pillars, including guaranteed purchase of products, price stability, capital support, development of pipeline infrastructure, loan guarantees, and an innovation challenge fund. Each biogas plant will be connected to the city gas distribution network or trunk pipelines. The government-supported pricing mechanism aims to mitigate the impact of global fuel price fluctuations. Additionally, MSME-based projects will receive loan guarantees of up to 85% and capital support for the plants.

Projected Outcomes of the GOBARdhan Scheme

The government estimates that within the next decade, CBG production could increase tenfold, reducing dependence on energy imports and saving over ₹40,000 crores in foreign exchange. Furthermore, it is expected to contribute more than ₹75,000 crores to the national GDP, create over 150,000 jobs, provide an alternative to 10 million metric tons of fossil fuels, reduce carbon emissions by over 40 million tons, and produce 250 million metric tons of organic fertilizers.

Highway Project Approval in Assam

In addition, the cabinet has approved the construction of a four-lane highway on National Highway-15 from Baihata Chariali (near Guwahati) to Mission Chariali (near Tezpur), spanning 135.87 kilometers. This project will be developed at a cost of ₹8,970 crores under the BOT (toll) model, incorporating advanced machine-based construction technology (AIMC), open tolling, and an advanced traffic management system.

Strategic Importance of the Highway

According to the government, this highway will enhance strategic connectivity to important defense centers like Tezpur, improve links between major economic hubs in Assam and Arunachal Pradesh, expedite freight transport, and reduce travel time between Guwahati and Tezpur from approximately three and a half hours to about 1.7 hours. Additionally, five bypasses will alleviate traffic pressure and boost regional economic activities.