Key Points

The scheme aims to increase farmers' income, promote effective stubble management, protect the environment, and provide significant benefits to the industrial sector.

Industry Minister Tarunpreet Singh Sond announced that the decision to provide capital subsidy for paddy straw as fuel in industrial boilers was taken at the Cabinet meeting held on February 13. The official notification was issued on February 20, followed by detailed subsidy guidelines on April 23.

He said the existing industrial units currently using coal, oil or other biomass fuels will be eligible for a capital subsidy if they install new paddy straw-based boilers.

The capital subsidy will be Rs 1 crore per 8 TPH (tons per hour) boiler or 33 per cent of the actual expenditure, whichever is less, with a maximum limit of Rs 5 crore per unit.

For existing units upgrading boilers to use paddy straw, a subsidy of Rs 50 lakh per 8 TPH boiler or 33 per cent of the actual expenditure, whichever is lower, will be provided, subject to a cap of Rs 2.5 crore per unit.

According to department estimates, 500 to 600 industrial units in the state are expected to benefit from this scheme, with Ludhiana-based industries, which are heavily boiler-reliant, likely to see the greatest advantage.

The government has earmarked a budget of Rs 60 crore for this scheme.

Additionally, the minister highlighted existing incentives such as 100 per cent stamp duty exemption for land purchased for paddy straw storage and handling, along with 100 per cent net State GST reimbursement (capped at 75 per cent of total investment) for seven years.

He emphasised that the objective of this policy is to encourage industrial development while ensuring environmental protection.

The new scheme will help reduce air pollution caused by stubble burning and promote sustainable use of paddy straw as a fuel source, benefiting the environment, farmers, and industries alike.

- IANS