
๐ CPCB Financial Support Guidelines for Paddy Straw Pelletisation & Torrefaction Plants (2024)
๐ 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.
๐ Detailed Summary:
๐น 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.
๐น 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.
๐น 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.)

๐น Financial Support:
- Pelletisation Plant: โน14 lakh per TPH (max โน70 lakh per proposal).
- Torrefaction Plant: โน28 lakh per TPH (max โน1.4 crore per proposal).
- Total fund pool: โน50 crore
(โน40 crore for pelletisation, โน10 crore for torrefaction).
๐น 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 3โ6 months of fund receipt.
- No recurring or O&M costs are supported.
๐ Related Websites:
โ ๏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.



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