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Bio CNG and Bio-ethanol to be Manufactured from Stubble; Punjab Signs MoU with 4 Companies

June 12, 2018 | By

Chandigarh: The Punjab government today issued a release maintaining that it was serious to check the stubble burning in the state. Minister of Power and Renewable Energy, Gurpreet Singh Kangar said that currently 20 million ton paddy straw per year is produced in the State. About 20 to 25 percent of this is being used and the rest is burnt in the fields. While 5-6 tonne biogas / bio CNG / bio ethanol can be produced from the stubble being burned in the fields, he said.

He said that seven bio-mass power plants are already underway in the State but now steps have been taken in the direction of Bio CNG / Bio Ethanol from paddy straw.

Minister said that state government has entered into an agreement with “four big companies” and has started work on setting up the plants.

Images used for representational purpose only

He said that with the commencement of these projects in Punjab, on one hand pollution from crop residue will decrease and on the other, the hand farmers will reap economic benefit. The project commencement will also generate employment for local people.

Under this MoUs have been signed with Hindustan Petroleum Corporation Limited, Indian Oil Corporation, Verbio India Private Limited and Rika Biofuel Development Limited. These companies will produce Biogas / Bio CNG / Bio-ethol from paddy straw.

Hindustan Petroleum Corp. Ltd. will create Bio Ethanol from paddy straw which is blend in Petrol and Diesel.

HPCL will set up this plant in Nasibpura village of Talwandi Sabo Tehsil of Bathinda district. The paperwork work related to which is almost complete and setting up of the plant is in progress. The company is investing around Rs 1000 crore on this project. After operationalisation of the plant, about 500 ton paddy straw will be used every day and will daily generate 100 kilo litre of bio ethanol.

Germany-based company Verbio India Private Limited has signed an MoU regarding making bio-CNG from paddy straw. This company will set up its plant in Bhutalkalan village of Leharagga tehsil of Sangrur district. This project has 100 %FDI. The total cost of this project is approximately Rs.75 crores. This plant will use 300 ton paddy stubble per day and will produce 33.23 tonne bio-CNG daily. Apart from this, 350 tonnes of organic manure will also be produced per day. The company has already purchased 20 acres of land for this project.

Similarly, Indian Oil Corporation had signed MoU with PEDA on January 15, 2018. Indian Oil will set up Bio CNG plant in Punjab. In the first stage, the Corporation will set up approximately 42 plants in Punjab, out of which they already have idintefied three sites where they will be set up first. Among these places are Sangrur, Bathinda and Nabha.

Similarly, Rika Biofuel Development Limited signed the MoU on May 11, 2018 through Invest Punjab, which would invest Rs 700 crore in Punjab to set up Biogas / Bio CNG plants.

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