Is Punjab Offering Subsidies for Paddy Straw-Based Boilers?
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Synopsis
In a bold move to support farmers and industries, Punjab has modified its Industrial Policy to introduce a subsidy scheme for paddy straw boilers. This initiative not only aims to help farmers increase their income but also focuses on environmental sustainability and effective stubble management.
Key Takeaways
- Capital subsidy for paddy straw-based boilers.
- Supports farmers' income and promotes environmental sustainability.
- Eligible units can receive up to Rs 5 crore in subsidies.
- Aims to mitigate air pollution from stubble burning.
- Budget allocation of Rs 60 crore for the scheme.
Chandigarh, May 15 (NationPress) In an impactful move, the Punjab government announced on Thursday that it has revised the Industrial and Business Development Policy of 2022 to implement a capital subsidy scheme aimed at the installation of paddy straw-based boilers.
This initiative is designed to boost farmers' earnings, enhance effective stubble management, safeguard the environment, and deliver considerable advantages to the industrial sector.
During a Cabinet meeting held on February 13, Industry Minister Tarunpreet Singh Sond confirmed the decision to offer a capital subsidy for utilizing paddy straw as fuel in industrial boilers. The official notification was released on February 20, followed by comprehensive subsidy guidelines on April 23.
Current industrial units using coal, oil, or other biomass fuels will qualify for a capital subsidy upon installing new paddy straw-based boilers.
The capital subsidy is set at Rs 1 crore per 8 TPH (tons per hour) boiler or 33 percent of the actual expenditure, whichever is lower, with a maximum cap of Rs 5 crore per unit.
For existing units upgrading to paddy straw boilers, a subsidy of Rs 50 lakh per 8 TPH boiler or 33 percent of the actual expenditure, whichever is less, will be granted, with a limit of Rs 2.5 crore per unit.
Department estimates suggest that 500 to 600 industrial units in the state are anticipated to benefit from this program, particularly industries based in Ludhiana, which are significantly reliant on boilers.
The government has allocated a budget of Rs 60 crore for this initiative.
Moreover, the minister pointed out existing incentives such as a 100 percent stamp duty exemption for land acquired for paddy straw storage and handling, along with a 100 percent net State GST reimbursement (capped at 75 percent of total investment) for seven years.
He underscored that the goal of this policy is to foster industrial growth while ensuring environmental protection.
This new scheme is expected to mitigate air pollution stemming from stubble burning and advocate for the sustainable utilization of paddy straw as a fuel source, benefiting the environment, farmers, and industries alike.
Point of View
The Punjab government's initiative represents a significant step towards integrating sustainable practices into industrial operations. By incentivizing the use of paddy straw, the scheme not only supports farmers but also addresses urgent environmental concerns, showcasing a balanced approach to development. This policy aligns with the growing need for industries to adopt eco-friendly practices while ensuring economic growth.
NationPress
08/06/2025
Frequently Asked Questions
What is the capital subsidy amount for paddy straw-based boilers?
The capital subsidy is set at Rs 1 crore per 8 TPH boiler or 33% of the actual expenditure, whichever is lower, with a maximum limit of Rs 5 crore per unit.
Who is eligible for the subsidy?
Existing industrial units currently using coal, oil, or other biomass fuels are eligible if they install new paddy straw-based boilers.
What is the total budget allocated for this scheme?
The government has earmarked a budget of Rs 60 crore for this subsidy scheme.
How will this scheme benefit the environment?
This initiative aims to reduce air pollution caused by stubble burning and promotes the sustainable use of paddy straw as a fuel source.
When was the official notification for the subsidy scheme issued?
The official notification was issued on February 20, following a Cabinet meeting on February 13.
