Centre to provide financial support to set up paddy straw utilisation plants

Update: 2022-10-13 18:56 GMT

New Delhi: In a move aimed at resolving the problem of stubble warning, the government on Thursday said that a one-time financial assistance will be given to individuals and companies to set up torrefaction and pelletisation plants to ensure a regular supply of paddy straw for co-firing in thermal power plants and industries.

Union Environment Minister Bhupender Yadav said that the setting up of these plants will help resolve the problem of stubble burning and generate income for farmers.

The financial assistance can be availed by individuals and companies setting up new plants and units using only paddy straw generated in Delhi, Punjab and Haryana, and NCR districts of Rajasthan and Uttar Pradesh, he said.

Along with unfavourable meteorological conditions, paddy straw burning in Punjab and Haryana is a major reason behind the alarming spike in air pollution levels in the national capital in October and November.

While addressing a workshop on "Guidelines for grant of one-time financial support for establishment of pelletisation and torrefaction plants to promote utilisation of paddy straw," the Union Minister said, "There is a need to facilitate setting up of pelletisation plants so that paddy straw is utilised and the issue of crop burning and pollution is further addressed."

The government had earlier mandated co-firing of 5 to 10 per cent of biomass along with coal to address the issue of air pollution and to reduce the carbon footprint of thermal power plants and industries. As per a government official, there is a demand for biomass by power plants, but the supply is on the lower side due to slow/limited growth of aggregators/suppliers.

As per the guidelines, financial support of Rs 14 lakh per tonne per hour plant production capacity (subject to a maximum of Rs 70 lakh per proposal) will be given for setting up new pelletisation units.

It further stated that Rs 28 lakh per tonne per hour plant production capacity will be provided for torrefaction plants, subject to a total financial support of Rs 1.4 crore per proposal. The government has earmarked Rs 50 crore for utilisation under the guidelines.

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