July 2, 2025

📘 CPCB Financial Support Guidelines for Paddy Straw Pelletisation & Torrefaction Plants (2024)

📄 Description:

The Central Pollution Control Board (CPCB), in collaboration with the Ministry of Environment, Forest and Climate Change (MoEF&CC), has launched a financial support scheme to encourage the setup of paddy straw-based pelletisation and torrefaction plants. This initiative aims to mitigate air pollution from stubble burning and promote sustainable fuel alternatives in power plants and industries near the NCR region.

📊 Detailed Summary:

🔹 Background:

Nearly 27 million tons of paddy straw is generated annually in Punjab and Haryana, with a significant portion burned, contributing up to 58% of PM2.5 pollution in Delhi winters (2018).
The annual estimated demand of paddy straw for co-firing in power plants and industries: ~75.5 lakh MT.

🔹 Objective:

Reduce stubble burning in Punjab, Haryana, Delhi, and NCR districts of Rajasthan & UP.
Promote alternative fuel use by encouraging biomass pellet and torrefied pellet plants.

🔹 Eligibility:

New units using only paddy straw from specified regions.
Applicants must supply pellets/torrefied pellets to power plants or industries.
Preference to units with:
- Farmer agreements for paddy straw supply.
- Offtake agreements with fuel buyers.
- Use of India-manufactured equipment. (PelletIndia.com offers complete support by supplying fully indigenous equipment under the ‘Make in India’ initiative.)

🔹 Financial Support:

Pelletisation Plant: ₹14 lakh per TPH (max ₹70 lakh per proposal).
Torrefaction Plant: ₹28 lakh per TPH (max ₹1.4 crore per proposal).
Total fund pool: ₹50 crore
(₹40 crore for pelletisation, ₹10 crore for torrefaction).

🔹 Approval & Conditions:

Mandatory clearances (e.g., CTE from SPCB) must be obtained by the applicant.
Bank Guarantee equal to support amount required (valid for 1 year).
Financial aid disbursed via State Pollution Control Boards.
Units must begin operations within 3–6 months of fund receipt.
No recurring or O&M costs are supported.

🌐 Related Websites:

⚠️ Disclaimer:

This summary is for informational purposes only and should not be treated as a legal or official government document. Please refer to the original CPCB guidelines for exact terms and conditions.