Paddy Straw Fuels Punjab's Biomass Power Plant, Tackling Stubble Burning

In 2025, SAEL Industries, one of India's largest biomass players, operates a 15 MW power plant near Ferozepur, Punjab that is fueled by paddy straw. This has provided a solution to the longstanding problem of stubble burning that has plagued the region.

Farmer Bhupinder Singh Gill, who cultivates paddy on his 40-acre holding, is now a relieved man. After the power plant was set up a few years ago, he has been earning ₹1,200 per acre for supplying the crop residue, or parali, as feedstock. This has eliminated the need for him to dispose of the stubble, which used to be a costly and environmentally damaging process.

The article notes that Punjab has become the epicenter of stubble burning in India due to factors like increased mechanization and narrow sowing windows. The experience with SAEL's biomass plant suggests that utilizing paddy straw in power generation can help address the issue of the toxic haze that blankets Delhi every October.

Promoted by a family with roots in agriculture, SAEL Industries is targeting 1 GW of installed biomass capacity by 2030, in addition to its significant presence in solar power. The company's CEO, Laxit Awla, says feedstock availability has not been a problem, as Punjab's farms alone leave behind 20 million tonnes of paddy straw annually, of which SAEL currently uses about 1.2 million tonnes.

While the high cost of setting up these plants, around ₹15 crore per MW, remains a challenge, SAEL officials emphasize that they should be viewed as waste management facilities rather than just electricity generation units. They suggest government support in the form of separate renewable purchase obligations and hybrid solar-biomass tenders to make the model more viable.