CPCB Financial Support Guidelines for Paddy Straw Pelletisation & Torrefaction Plants
July 2, 2025

๐Ÿ“˜ CPCB Financial Support Guidelines for Paddy Straw Pelletisation & Torrefaction Plants (2024)

๐Ÿ“„ 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.


๐Ÿ“Š Detailed Summary:

๐Ÿ”น 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.

๐Ÿ”น 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.

๐Ÿ”น 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.)

๐Ÿ”น Financial Support:

  • Pelletisation Plant: โ‚น14 lakh per TPH (max โ‚น70 lakh per proposal).
  • Torrefaction Plant: โ‚น28 lakh per TPH (max โ‚น1.4 crore per proposal).
  • Total fund pool: โ‚น50 crore
    (โ‚น40 crore for pelletisation, โ‚น10 crore for torrefaction).

๐Ÿ”น 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 3โ€“6 months of fund receipt.
  • No recurring or O&M costs are supported.

๐ŸŒ Related Websites:


โš ๏ธ 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.



๐Ÿ“ž Contact Us for Biomass Solutions
๐Ÿ“ Servoday Plants & Equipments Ltd
๐Ÿ“ž +91 9427210483 | +91 9427210484
๐Ÿ“ง sanjay@servoday.in
๐ŸŒ www.PelletIndia.com
๐Ÿ‘ค Contact Person: Sanjay Masuria
๐Ÿ“ฒ WhatsApp: +91 9427210483


From Concept to Commissioning. We are with You.
Our policy is simple and transparent:
No undersized parts, no fraud, no fake componentsโ€”genuinely serving since 1969. ๐Ÿš€๐Ÿ”ฅ



Tags: