With a huge quantity of paddy straw being generated across the northern states, the Central Pollution Control Board (CPCB) has announced a one-time fund of Rs 50 crore to support entrepreneurs who can set up new units for converting this biomass into pellets that can be further used by the power plants. The new units would be required to be established in the next 5-6 months.
Nearly 27 million ton of paddy straw is generated across Punjab, Haryana and parts of Uttar Pradesh under NCR every October-November when harvesting begins. Amid lack of better, cost-effective options, most farmers end up setting fire to this leftover stubble which contributes to the worsening pollution levels in Delhi during winter.
In order to ensure its alternate disposal, the government had directed all thermal power plants, which are major emission sources to at least co-fire 5-10% biomass along with coal. However, the latest survey showed, most of them are still far off from meeting the target.
“We have already issued statutory directions to thermal power plants for co-firing biomass with coal, and asked industries in NCR to switch over to PNG or biomass. While this has increased the demand, the overall supply remains low. The new guidelines would provide assistance towards capital investment for setting up such plants and help to bridge that gap in biomass supply chain,” Union environment minister Bhupender Yadav said on Thursday.
THE NEED
Paddy straw cannot be directly used by thermal power plants if they intend to co-fire it with coal, and has to be converted into pellets. Torrefaction further helps in improving the properties of biomass so that it is at par with that of coal. The process essentially involves processing the biomass at a temperature of nearly 250-350 degree Celsius in the absence of oxygen to lock in its energy content and even enhance it.
“It is not a scheme, but a one-time fund. This is to address the emergent needs of the power plants, and support setting up these units which can help bring down stubble burning, and clear the air for Delhi,” Tanmay Kumar, CPCB chief, told the entrepreneurs who had gathered in Delhi, adding that no assistance shall be provided for meeting recurring or other maintenance costs.
Preference will be given to those who already have an arrangement for offtake of paddy straw pellets, and those using Made-in-India equipment.
As per the plan, out of the total Rs 50 crore, Rs 40 crore is allocated for setting up non-torrefied pelletisation plants and Rs 10 crore for torrefaction-cum-pelletisation units. In case of pelletisation plant, a maximum amount of Rs 14 lakh per ton plan production capacity per hour can be given, extendable up to Rs 70 lakh per proposal. In case of torrefaction, a maximum of Rs 28 lakh per ton plant production capacity per hour can be provided, subject to a total of Rs 1.4 crore grant per proposal.
TARGETS
Chairman of National Thermal Power Corporation (NTPC) Gurdeep Singh said the PSU is doing everything possible to increase the usage of biomass, but facing problems due to inadequate supply. “We have been trying for last few years now, hopefully this financial support would give the necessary impetus to our efforts, and encourage more entrepreneurs to set up their units,” he said.
Since most thermal power plants were yet to meet the targets, the Ministry of Power and Ministry of Environment in its last review meeting had directed the Commission for Air Quality Management (CAQM) to consider penal provisions on such plants which are not making enough efforts in the direction.
According to the government data, 83,066 ton of biomass has been co-fired in 39 thermal power plants across the country totalling to a capacity of 55,390 MW. In NCR region, only 10 thermal power plants have started co-firing, with only 22,696 tonne biomass co-fired so far.
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