Punjab Seeks Funding for Biomass Power Plants

New Delhi, Nov 6 (PTI) Punjab Power Minister Harbhajan Singh on Monday sought Viable Gap Funding (VGF) from the central government for the state to encourage biomass-fueled power plants and to help check the practice of stubble burning by farmers.

Participating in the conference of Power and New and Renewable Energy Ministers here, the Punjab Power Minister said the total cost of conventional power with the cost of Renewable Energy Certificates for Renewable Purchase Obligation (RPO) compliance is much lower than the tariff of Biomass power plants which is around Rs 8 per kwh.

He said that VGF needed to be provided by the Government of India to Punjab in order to make procurement of power from biomass power plants competitive for distribution companies (DISCOMs).

The minister also sought permission to use coal from the Pachhwara coal mine by private thermal plants of Punjab. He said that this permission should be granted as the entire cost of coal being received from the Pachhwara coal mine is being borne by the consumers of the state, a statement said.

Raising another issue related to the farmers of the state, Harbhajan Singh said that the provision of 30 per cent subsidy on the irrigational solar pump is for pumps of 7.5 Horse Power (HP) only, whereas, in Punjab pumps of 15 HP and above are being used for irrigation.

He said that the current subsidy should be extended for irrigational solar pups of 15 HP or above to encourage the farmers to make maximum use of this renewable energy.