New Delhi: State-owned Punjab Energy Development Agency (PEDA) has signed an agreement with GAIL (India) Limited to set up 10 compressed biogas projects and other new and renewable energy projects in the state.
The memorandum of understanding (MoU) was signed by PEDA CEO Amarpal Singh and GAIL (India) Executive Director RK Singhal, an official release said.
Punjab New and Renewable Energy Sources (NRES) Minister Aman Arora said the pact will help the state to manage five lakh tonnes of paddy straw per annum and generate clean energy out of it.
Punjab is an agrarian state, and it has immense potential for crop residue-based CBG plants, he said, adding that the Punjab government's business-friendly policies are helping in facilitating companies to set up their industries in the state.
NRES Secretary Ravi Bhagat said that with the implementation of these 10 projects, paddy straw in around 1.25 lakh acres is expected to be prevented from being burnt.
These projects will also create around 50 rural entrepreneurs for the supply of paddy straw to these plants, further generating employment for over 500 persons by these rural entrepreneurs, he added.
GAIL's Singhal said 10 CBG projects will be set up with an investment of about Rs 600 crore, producing 35,000 tonnes of biogas and about 8,700 tonnes of organic manure annually.
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