Punjab: Biomass plant operations halted, raising concerns about stubble management

Punjab: Amid the potential for a spike in stubble burning around Diwali, baler owners in Muktsar district are worried as a biomass plant in Gulabewala village has suspended operations, citing a sharp reduction in power purchase rates by the Punjab State Power Corporation Limited (PSPCL). The shutdown has also alarmed the district administration, which recently held a meeting amid fears of a spike in stubble burning. With paddy harvesting underway, fearing significant losses, baler owners met Agriculture Minister Gurmeet Singh Khuddian and sought his intervention. Sukhchain Singh Mann, president of the Gulabewala Baler Union, said, “The minister has assured to raise the issue in Monday’s cabinet meeting. Farmers and baler owners from 20-25 villages are worried as the plant was purchasing paddy residue grown on over 50,000 acres of land, significantly helping to combat stubble burning.” The 6-megawatt plant, commissioned in 2005, had a 20-year power purchase agreement (PPA) with PSPCL, which could be extended for another 10 years. A plant official said, “The PPA expires in April 2025. The rate, which had risen from Rs. 3.50 to Rs. 8.60 per unit, subject to a 5 percent annual escalation, is now being reset to Rs. 3.50 per unit, making operations unviable.” Muktsar district currently has two other biomass plants—a 14.5-megawatt unit in Channu village and a 44-megawatt unit at a paper mill in Rupana village. Another 8-megawatt plant is also operational in Gaddan Doob village in neighboring Fazilka. According to sources, two of these three plants were operating under stay orders on their PPAs. Baler owners fear that if only one unit remains operational, it could lead to a monopoly and further reduce the stubble purchase rates, which currently range between Rs 160 and Rs 170 per quintal.