The Punjab government has announced a capital subsidy scheme to encourage industries to adopt paddy straw-based boilers, a move aimed at managing agricultural residue and reducing dependence on coal. Industries and Commerce Minister Tarunpreet Singh Sond confirmed the initiative during a media briefing on Thursday.
The state has earmarked Rs 60 crore under this initiative to incentivise industrial units that utilise paddy straw as fuel. According to Sond, this step not only addresses the challenge of stubble management but also presents an opportunity to supplement farmers’ income through straw procurement.
Financial support to encourage adoption and conversions
Under the scheme, a subsidy of Rs 1 crore will be provided for setting up a new 8-tonne paddy straw-based boiler, and Rs 2 crore for a 16-tonne unit. For industries opting to convert their existing boilers, the government will offer Rs 50 lakh for 8-tonne capacity and Rs 1 crore for 16-tonne capacity conversions.
In addition to the capital assistance, the scheme allows industries to use a fuel mix comprising 80% paddy straw and 20% biofuel, offering flexibility in transitioning away from coal-based energy.
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Sond noted that with adequate financial support, more industrial units would be encouraged to collect and use paddy straw from fields, effectively reducing the quantity burned in open air.
Linking pollution control with industrial incentives
The initiative comes in the context of recurring air pollution issues in northern India during the paddy harvesting season. Stubble burning in Punjab and Haryana is widely recognised as a major contributor to deteriorating air quality in Delhi and surrounding regions during October and November.
By linking industrial incentives with environmental goals, the Punjab government aims to make cleaner fuel usage economically viable for industries while addressing one of the region’s most pressing air quality challenges.