Converting crisis into opportunity: Why paddy straw-based CBG deserves special funding

Every winter, Delhi-NCR faces a severe air quality crisis from vehicular emissions, industrial activity, dust, and biomass burning. Seasonal paddy stubble burning in northern India remains a major contributor, especially during October–November when weather conditions trap pollutants near the ground.

Policy measures like the Crop Residue Management (CRM) scheme have reduced burning incidents, but the problem’s scale demands a structural, economically viable solution. Compressed Biogas (CBG) production from paddy straw addresses both environmental and agricultural challenges effectively.

These emissions worsen air quality, triggering respiratory illnesses, eye and skin problems, and aggravating heart and lung diseases.

Much of this is lost in flames, harming soil temperature, pH balance, moisture, phosphorus availability, and organic matter. The result is long-term decline in agricultural productivity.

India produces an estimated 228–230 million tonnes of surplus agricultural biomass annually (after traditional uses like fodder), with heavy concentrations in Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, and Rajasthan—the States worst affected by stubble burning.

This biomass represents a strategic opportunity: converting paddy straw from an environmental liability into a valuable energy resource via CBG production, complemented by biomass co-firing in thermal power plants.

CBG plants offer a direct alternative to open-field burning, cutting pollutant emissions at the source.

Climate and sustainability benefits: As a clean, renewable fuel, CBG reduces greenhouse gas emissions and generates nutrient-rich organic manure (FOM/LFOM), aiding soil restoration and sustainable farming.

Energy security: Domestically produced CBG decreases reliance on imported natural gas. The government’s CBG Blending Obligation (CBO)—starting at 1 per cent in FY 2025–26 and rising to 5 per cent by FY 2028–29—supports national targets while providing reliable, dispatchable energy.

Rural economic growth: CBG projects create farmer income streams, generate rural jobs, and build organized biomass supply chains.

These issues necessitate targeted policy and financial support, building on frameworks like the Revised Operational Guidelines 2024 of the CRM scheme.

Enhanced capital subsidies and Viability Gap Funding (VGF): Higher subsidies can offset elevated upfront costs, especially for pre-treatment systems. VGF bridges the gap between project costs and returns, boosting investor confidence.