New Enhanced Rates of Financial Support for Torrefaction Plants

LegalitySimplified

The Central Pollution Control Board (CPCB) has enhanced its financial support for Torrefaction Plants. CPCB has observed that the capital costs for setting up of Torrefaction Plants. This Office Memorandum (OM) was issued on November 28, 2023.

It may be recalled that in March 2023, CPCB had notified “Guidelines for grant of one-time financial support under EPC Funds for establishment of palletization and torrefaction plants to promote utilization of paddy straw

Subsequently, in March 2023, CPCB issued Revised Guidelines for Grant of One-time Financial Support under Environment Protection Charge Funds for establishment of pelletisation and torrefaction plants to promote utilisation of paddy straw.

As per these revised guidelines, the maximum financial assistance for setting up of pelletisation plant was revised from INR 14 lakh to INR 28 lakh per Ton Per Hour (TPH) production capacity or 40% of capital cost for plant and machinery of one TPH plant, whichever is lower. Additionally, the amount of total financial assistance was also enhanced from INR 70 lakh per proposal to INR 1.4 crore per proposal.

Now, by the present OM, these rates have undergone a further increase. The maximum financial assistance for setting up of torrefaction plant is raised from INR 28 lakh to INR 56 lakh per Ton Per Hour (TPH) production capacity or 40% of capital cost for plant and machinery of one TPH plant, whichever is lower. Moreover, the amount of total financial assistance was also enhanced from INR 1.4 crore per proposal to INR 2.8 crore per proposal.

The CPCB has explained that it has received very few application for setting up of torrefaction plants. This is because the capital costs for setting up torrefaction plants are higher as compared to pelletisation plants. Hence, to encourage the submissions of more applications, the CPCB has acknowledged the differences in capitals costs and has published enhanced rates.

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