Currently, 20 million tons of paddy straw is produced in the state annually and 20 to 25 per cent of this is being used and the rest is burnt, Kangar said.
He said five to six tons of biogas, bioCNG or bio-ethanol can be produced from the stubble being burned in the fields.
Seven bio-mass power plants are already underway in the state, but now steps have been taken in the direction of Bio CNG/bio-ethanol from paddy straw, the minister said.
The state has entered into an agreement with four big companies and has started work on setting up the plants, he said.
He said with the commencement of these projects in Punjab, on one hand pollution from crop residue will decrease and on the other, farmers will reap economic benefit.
The project commencement will also generate employment for local people, he said.
Under this MoUs have been signed with Hindustan Petroleum Corporation Limited, Indian Oil Corporation, Verbio India Private Limited and Rika Biofuel Development Limited, he said.
These companies will produce Biogas/bio CNG/bio-ethanol from paddy straw, he said.
Hindustan Petroleum Corporation Ltd (HPCL) will create bio-ethanol from paddy straw, which is a blend in petrol and diesel, he said.
HPCL will set up a plant in Nasibpura village of Talwandi Sabo Tehsil in Bathinda district, he said.
The paperwork work related to it is almost complete and setting up of the plant is in progress, he said.
The company is investing around Rs 1,000 crore on this project, he said.
The minister said after the plant is operational, about 500 tons of paddy straw will be used daily and will every day generate 100 kilo litre of bio-ethanol.
Germany-based Verbio India Private Limited has signed an MoU for making bio-CNG from paddy straw, he said.
This company will set up its plant in Bhutalkalan village of Leharagga tehsil in Sangrur district.
This project has 100 per cent FDI, he said, adding that the total cost of this project is around Rs 75 crore.
This plant will use 300 tons of paddy stubble per day and will produce 33.23 tonne bio-CNG daily, he said.
Besides this, 350 tonnes of organic manure will also be produced per day. The company has already purchased 20 acres of land for this project, Kangar said.
Similarly, Indian Oil Corporation had signed an MoU with PEDA on January 15. The corporation will set up a BioCNG plant in Punjab, he said.
In the first stage, the corporation will set up around 42 plants in Punjab. They already have identified three sites in Sangrur, Bathinda and Nabha where they will be set up first, he said.
Similarly, Rika Biofuel Development Limited signed the MoU on May 11 through Invest Punjab, which would invest Rs 700 crore in Punjab to set up Biogas/Bio CNG plants, the minister said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)