Making a significant appeal to the Central Government, Punjab Power and PWD Minister Harbhajan Singh ETO on Wednesday urged for subsidies to support Biomass Power Projects aimed at tackling the stubble burning crisis in northern states.

The Minister, speaking at the Conference of Power Ministers presided over by Union Power Minister Manohar Lal Khattar, emphasized the urgent need for financial support to bolster sustainable solutions to air pollution caused by crop residue burning.

He proposed a subsidy of Rs five crore per megawatt (MW) for biomass energy plants, positioning this financial backing as essential for making biomass projects viable and reducing the severe pollution impact of stubble burning in states like Punjab. “With suitable subsidies, biomass plants using paddy straw could produce one megawatt of electricity per unit, bringing down the cost from Rs 7.5 to Rs five per unit, making the project financially feasible for the state,” Singh stated.

The Minister highlighted that the Ministry of New and Renewable Energy already allocates substantial funds — Rs 4,000 crore for compressed biogas (CBG) plants capable of producing 4.8 tons of CBG daily, which is closely aligned with biomass energy production through stubble. He advocated for a similar subsidy structure or Viability Gap Funding (VGF) for biomass power, aligning it with the Government’s renewable energy goals while addressing Punjab’s acute pollution concerns.

Apart from his demands for biomass subsidies, the Minister also addressed key challenges facing Punjab’s agricultural and energy sectors. He called for extension of the Prime Minister’s KUSUM scheme, which currently provides a 30 percent subsidy on solar pumps up to 7.5 horsepower (HP). He urged the inclusion of pumps with capacities up to 15 HP, stating, “With Punjab’s declining water tables, farmers are compelled to use higher-capacity pumps. Extending subsidies to 15 HP pumps will greatly support solar energy adoption in agriculture, thus easing dependence on groundwater resources.”

In another critical point, the Minister urged the Union Minister to expedite the completion of two vital Bhakra Beas Management Board (BBMB) pumping storage projects in Himachal Pradesh with a combined capacity of 4,300 MW, which are anticipated to provide significant energy support to Punjab. He also suggested reducing the seven-paisa margin per unit charged by the Solar Energy Corporation of India (SECI), stating it as an excessive cost for the state’s resources.

Finally, the Minister tackled the high cost of coal transportation, which burdens Punjab due to the state’s distance from coal-producing regions. He proposed establishing Mega Power Generation Plants within coal-producing states to supply electricity to distant states like Punjab directly, thereby mitigating transportation expenses. Punjab State Power Corporation Limited (PSPCL) CMD Baldev Singh Sran, also in attendance, expressed support for Singh’s suggestions, emphasizing the need for a cooperative approach to renewable and cost-effective energy solutions.

Punjab’s demands

·         Demands Rs 5-cr per MW subsidy for biomass power plants to address stubble burning and reduce pollution

·         Proposes Viability Gap Funding (VGF) for biomass projects to make them financially viable and decrease per unit cost

·         Calls for an extension of PM KUSUM scheme to include solar pumps up to 15 HP to aid farmers with declining groundwater levels

·         Urges Centre to expedite completion of two BBMB pumping storage projects in HP with 4,300 MW capacity

·         Suggests reducing 7 paise margin per unit charged by SECI to reduce costs for Punjab

·         Proposes establishing Mega Power Generation Plants in coal-producing states to reduce freight costs for Punjab