Punjab Government on Friday signed a memorandum of Understanding (MoU) to pave the way for setting up of bio-gas and bio-CNG plants in the state, as a 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 was signed with Rika Biofuels Development limited UK by Punjab Bureau of Industrial Promotion (PBIP) and Punjab Energy Development Agency (PEDA) in the presence of Punjab Finance Minister Manpreet Singh Badal and Deputy High Commissioner at British High Commission, Chandigarh.
A spokesperson said that PIDB will facilitate regulatory clearances and incentives by the State Government.
These plants will be based on a new patented Anerobic Digester concept and Straw Extruding Technology.
Rika plans to build in excess of 10 Bio CNG plants with a total investment of Rs 100-150 million USD, creating up to 1,000 jobs across the whole operation and supply chain with the aim of having the first plant operational in 2019. The capacity of each plant will be around 100 MT of paddy straw intake daily, said the spokesperson.
The spokesperson said that these projects would promote sustainable agriculture practices by stopping burning which severely damages the soil.
The digestate/bio manure which is rich in organic and inorganic matter, gives a perfect mix of nutrients that promotes long term soil health and improves agricultural yield.
"Punjab 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 NRSE Policy-2012", the spokesperson said.
Rika Bio fuels is a specialist anaerobic digestion project developer, specialising in processing problem feed stocks including high volume manures and agricultural wastes such as crop straws.
Rika biofuels director Gregory Krupnikovs said “We are very excited to be working with the Punjab Government and look forward to developing these projects and helping the state of Punjab and India solve environmental problems arising from the burning of paddy straw.”