The plants will become operational before the next harvesting season and prevent a repeat of the environmental hazard triggered by stubble burning, a government spokesperson said.
Under the Rs 10,000-crore deal, NEWAY Engineers MSW Private Limited will set up 400 cluster units over the next 10 months, he said.
Each plant would be able to process 50,000 tonnes of paddy straw in a year. Around 20 million tonnes of stubble is generated in the state in a season, the spokesperson said.
NEWAY will use its patented, pollution-free Zero Residue Technology to ensure there is no residue left at the end of the process, the spokesperson said.
The Punjab government will allocate 7 acres of land to each cluster unit and provide power at subsidised rates, he said.
The carbon-rich fuel produced will find application in diverse industries, including cement, iron and steel, sugarcane, paper, thermal power plants and methanol/ethanol production, he said.
The spokesperson said the chief minister directed the department concerned to ensure the project is implemented in a time-bound manner.
Thick clouds of smog continue to cocoon the city and the adjoining areas for over a fortnight now, attracting national media attention.
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