Punjab, IOC sign MOU for biogas plants

CHANDIGARH :

The Punjab government on Monday signed a memorandum of understanding (MOU) with Indian Oil Corporation (IOC) Ltd for setting up of biogas and bio-cng plants in the state to find sustainable solutions to straw-burning, a major environmental concern.

The MOU with IOC was signed by Punjab Bureau of Industrial Promotion (PBIP) and Punjab Energy Development Agency (PEDA), in the presence of the chief minister Captain Amarinder Singh.

The plants, to be based on a new concept and technology, will be set up at a total investment of ₹5,000 crore, and will generate employment for around 4,000 people.

The project will be initiated with 42 plants becoming operational in 2018, probably before the paddy season. It will be scaled up to 400 plants over the next 3-4 years, making it the one of the biggest such projects in the country, an official spokesperson said.

It is estimated that 400 units will consume biomass of about 10 million tonnes per annum and will produce 1,400 million kg per annum compressed natural gas (CNG) and 6,000 million kg per annum manure.

By converting bio-mass to compressed bio-gas and biocng, the plants will take help curb the menace of stubble burning and create additional income to farmers.

The project will also create rural employment and entrepreneurial opportunities, besides providing a green organic source of compost for soil enrichment.

The government will facilitate identification of land parcels in various locations of the state for setting up the plants, and also ensure incentives and benefits as applicable for such plants under the State Industrial and Business Development Policy-2017 and the State NRSE Policy-2012.