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Tuesday, 16 January 2018 17:15

Punjab sign MoU with IOC to set up biogas, bio-CNG plants

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The Punjab government has signed a Memorandum of Understanding (MoU) with the Indian Oil Corporation to set up bio-gas and bio-CNG plants in the state.

The pact is part of the state's concerted efforts to find sustainable solutions to paddy straw burning, which has emerged as a major environmental concern.

The MoU with IOC was signed by Punjab Bureau of Industrial Promotion (PBIP) and Punjab Energy Development Agency (PEDA) here in the presence of Chief Minister Amarinder Singh.

The project will be initiated with 42 plants becoming operational in 2018.

It is estimated that 400 units will consume biomass of about 10 million tonne per annum and will produce about 1,400 million kg per annum CNG and 6,000 million kg per annum manure.

By converting bio-mass to compressed bio-gas and bio-CNG, 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 chief minister suggested setting up of societies of unemployed youth and encourage them to set up the proposed units with the support of the state government, and the IOC taking up the end product sales.


The IOC Chief General Manager Subodh Kumar agreed to explore the suggestion.

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 New and Renewable Sources of Energy Policy-2012.

Through PEDA, it will also facilitate Indian Oil to obtain permission for the marketing of compost/fermented manure and slurry, subject to the completion of all formalities by the IOC.

Additional Info

  • News Section: Bio Energy News
  • Month: January
  • Year: 2018
Read 73 times Last modified on Thursday, 18 January 2018 09:43

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