Last Updated: 30 Dec 2024

IMPACT^[1]

-- 18 paddy straw pellet manufacturing units already running
-- 19 more units under construction

Current capacity is to consume 3.05+ Lakh Metric Tonnes paddy straw^[2]
-- Another 5.21 LMT capacity to be added with additional 19 units
-- Total will reach 8.26 LMT

In 2022, only 100MT pellet could be supplied against demand of 60,000 MT due to shortage of manufacturers^[1:1]

¶ Promotion of Pellets from stubble

Demand Creation

• Mandatory co-firing of paddy pellets with coal in Thermal Power Plants^[3]
• Punjab makes mandatory to use 20% straw as fuel for brick-kilns^[4]
  • Stuck in Punjab HC due to a litigation^[5]

Supply Augmentation

• Multiple schemes to provide subsidy to encourage paddy straw based pelletisation factories^[6][7][8]
• 40% financial grant for investers, while he has to invest an equal amount from his resources and raise the rest 20% from any institute^[2:1]
• A MoU was signed between the Punjab government & Gramin Vikas Trust last year in October wherein the NGO will support FPOs ( Farmer Producer Organizations) in buying biomass from farmers and utilize it to create biomass pellets^[9]

Market Regulation

• Power Ministry has decided to benchmark prices for biomass pellets effective from 1st January 2024^[3:1]

References:

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1. https://timesofindia.indiatimes.com/city/chandigarh/power-plants-struggle-to-meet-pellet-blending-target/articleshow/116768424.cms ↩︎ ↩︎

2. https://www.hindustantimes.com/cities/chandigarh-news/punjab-sees-3-fold-rise-in-units-converting-stubble-into-co-firing-pellets-101724606848045.html ↩︎ ↩︎

3. https://www.eqmagpro.com/power-ministry-to-benchmark-biomass-pellet-prices/ ↩︎ ↩︎

4. https://www.tribuneindia.com/news/punjab/punjab-makes-mandatory-to-use-20-pc-straw-as-fuel-for-brick-kilns-450593 ↩︎

5. https://timesofindia.indiatimes.com/city/chandigarh/punjabs-environmental-woes-burning-fields-toxic-air-water/articleshow/116758619.cms ↩︎

6. https://www.hindustantimes.com/cities/delhi-news/centre-announces-rules-for-grant-to-establish-paddy-pellets-plant-101665686958160.html ↩︎

7. https://www.thehindu.com/sci-tech/energy-and-environment/government-to-help-set-up-paddy-straw-pellet-units-to-curb-stubble-burning/article66006419.ece ↩︎

8. https://pscst.punjab.gov.in/sites/default/files/documents/GUIDELINES/Procedure-applying-Grant-for-new-Paddy-straw-based-pelletisation-plant20230221.pdf ↩︎

9. https://www.etvbharat.com/english/state/punjab/punjab-govt-inks-mou-with-gramin-vikas-trust-to-manage-stubble-burning/na20221007211624569569239 ↩︎