The Government has revised the Crop Residue Management guidelines enabling efficient ex-situ management of paddy straw generated in the States of Punjab, Haryana, UP and Delhi. The Ministry of Agriculture & Farmers Welfare has issued a press release on the same on 1st July, 2023.
As per the revised guidelines, techno-commercial pilot projects for Paddy Straw Supply Chain will be established under the bilateral agreement between the Beneficiary/Aggregator (Farmers, rural entrepreneurs, Cooperative Societies of Farmers, Farmers Producer Organizations (FPOs) and Panchayats) and Industries utilizing the paddy straw.
Govt shall provide financial assistance on the capital cost of machinery and equipment. The required working capital may be financed either by the Industry and Beneficiary jointly or utilizing the Agriculture Infrastructure Fund (AIF), NABARD Financial or Financing from the Financial Institutions by the beneficiary. The land for storage of the collected paddy straw will be arranged and prepared by the beneficiary as may be guided by the end use industry.
State Governments shall approve these projects through project sanctioning committee.
Government (jointly by Central and State Governments) will provide financial support of 65% of the project cost, Industry as primary promoter of the project will contribute 25% and will act as the Primary consumer of the feedstock collected and Farmer or group of Farmers or Rural Entrepreneurs or Cooperative Societies of Farmers or Farmers Producer Organizations (FPOs), or Panchayats will be the direct Beneficiary of the project and will contribute the balance 10%.