Punjab Minister Harbhajan Singh ETO Calls for Central Subsidies on Biomass Power Projects to Curb Stubble Burning in Northern States

New Delhi/Chandigarh, November 13, 2024:

In a significant move to address one of North India’s most pressing environmental issues, Punjab’s Power and Public Works Department (PWD) Minister, Harbhajan Singh ETO, has urged the Central government to implement a robust subsidy plan for biomass power projects. Speaking at the Conference of Power Ministers of States and Union Territories in New Delhi, chaired by Union Power Minister Manohar Lal Khattar, Mr. Singh emphasized that supporting biomass projects financially could provide a sustainable solution to the persistent problem of stubble burning in northern states like Punjab, which contributes to severe air pollution each winter.

During the conference, Harbhajan Singh proposed a subsidy of Rs 5 crore per megawatt (MW) for biomass energy plants. He argued that such support would enhance the viability of these projects, allowing them to utilize paddy straw as a fuel source to produce clean energy, thereby reducing the need for open stubble burning—a practice that releases hazardous pollutants into the atmosphere. Drawing attention to similar initiatives, he mentioned that the Ministry of New and Renewable Energies has allocated Rs 4000 crore in subsidies for plants that produce 4.8 tons of compressed biogas (CBG) per day. According to Singh, a biomass facility utilizing an equivalent amount of crop residue could efficiently generate 1 MW of electricity, which would not only help meet energy demands but also prevent environmental degradation due to crop residue burning.

Further, Singh noted that subsidies or Viability Gap Funding (VGF) could bring down the cost of biomass energy from Rs 7.5 per unit to Rs 5 per unit, making it an economically feasible option for Punjab and neighboring states. He reiterated that tackling stubble burning with renewable biomass solutions would be a dual win, alleviating the pollution burden and providing sustainable energy for the region.

On a related note, Minister Harbhajan Singh raised concerns regarding the need for expanded subsidy support under the PM-KUSUM scheme, which currently offers a 30% subsidy for solar agricultural pumps with a capacity of up to 7.5 horsepower (HP). He highlighted that due to Punjab’s declining groundwater levels, farmers are increasingly compelled to install higher-capacity pumps, often ranging from 15 to 20 HP. Singh urged the Ministry to expand the subsidy limit to cover pumps up to 15 HP, thus incentivizing farmers to shift towards solar-powered irrigation solutions, which would lessen dependency on grid power and promote sustainable agriculture in Punjab.

Additionally, Harbhajan Singh called on the Union Power Ministry to expedite two key projects by the Bhakra Beas Management Board (BBMB) in Himachal Pradesh, namely the 4,300 MW Pumped Storage Projects in Raipur and Garial, which are crucial for the region’s renewable energy development. He also suggested reducing the margin Punjab must pay per unit to the Solar Energy Corporation of India (SECI) by seven paise, which he considers disproportionately high and financially straining for the state’s resources.

The issue of freight costs on coal was another major concern Singh brought to the table. Punjab, as a non-coal-producing state, faces significant expenses to transport coal from distant states. Harbhajan Singh proposed that the Central government establish large power generation plants closer to coal mines and distribute electricity across states like Punjab. This strategy, he argued, would relieve Punjab from unnecessary freight charges, improving efficiency and reducing the financial load on the state’s power sector.

Punjab State Power Corporation Limited (PSPCL) Chairman and Managing Director Baldev Singh Sran was also present at the conference, reinforcing Punjab’s commitment to addressing energy and environmental challenges through collaborative and innovative approaches.

Harbhajan Singh ETO’s participation and proactive proposals at the conference underscore Punjab’s determination to lead in clean energy initiatives and solutions for sustainable agricultural practices. By advocating for central support, Punjab is pushing towards a greener future, seeking a path to economic viability in renewable energy that can help mitigate the impact of stubble burning on the environment.

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