UP’s new bio-fuel policy to reduce pollution due to stubble burning
The Uttar Pradesh government is ready with a new bio-fuel policy which is being seen as a significant move to deal effectively with the environmental crisis arising out of stubble burning by farmers in the state.
The proposed policy seeks to promote and incentivise setting up of power generation plants based on paddy straws and also makes it mandatory for state-owned thermal stations to use agricultural residue as raw material with coal to fire the power plants.
“The draft policy titled Uttar Pradesh Bio-Fuel Policy-2020 is ready and will soon be put before the cabinet for approval before the final policy is rolled out to effectively manage crop residues/stubble, among other things, in the state,” said a senior official dealing with the issue.
According to the draft policy accessed by Hindustan Times, the state government will provide various incentives to private developers to set up paddy straw-based biomass power plants of 100 mw each through competitive biddings in the first phase, and depending on the experience, 300 mw plants can be set up in the next phase.
To assure developers of remunerable returns on their investment, it will be binding on the UP Power Corporation Ltd (UPPCL) to enter into long-term power purchase agreements with them to buy power from such plants for 20 years at the tariff to be fixed by the UP Electricity Regulatory Commission (UPERC).
The state government will provide an annual grant of more than Rs 250 crore to the UPPCL to buy power that might be a little costlier than what it procures from other sources.
