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Steps involved in applying for grant of one-time financial support for establishment of new paddy straw based pelletisation plant

Launched by CPCB under Environment Protection Charge (EPC) funds

The Central Pollution Control Board (CPCB) has introduced a financial support scheme to encourage the establishment of paddy straw-based palletization plants. This scheme aims to promote entrepreneurship and address the issue of paddy straw waste in specific regions, including the NCT of Delhi, Punjab, Haryana, and NCR districts of Rajasthan and Uttar Pradesh. The key features of the scheme are as follows:

Eligibility: The scheme is open to individuals, entrepreneurs, and companies interested in setting up new 100% paddy straw-based palletization plants. Existing plants are not eligible for this financial support.

First-come, First-served Basis: Applications for financial support will be processed on a first-come, first-served basis. It is important for interested parties to apply promptly to secure their position.

Financial Support: The financial support provided under this scheme is specifically for plant and machinery costs, excluding civil work, land acquisition, operation and maintenance expenses, and raw material costs. The support is intended to incentivize the establishment of new pelletisation plants.

Made in India Preference: The CPCB encourages the use of plant and machinery manufactured in India. While not mandatory, preference will be given to equipment that is domestically produced, supporting the government's "Make in India" initiative.

Support Amount: The financial support offered depends on the capacity of the pelletising plant. For a 1 TPH (ton per hour) plant, a one-time financial support of up to Rs.14 lakh will be provided. For a 5 TPH plant, the maximum support amount can go up to Rs.70 lakh.

The objective of this financial support scheme is to promote the efficient utilization of paddy straw waste through the establishment of pelletisation plants. By incentivizing the use of paddy straw as a resource, the CPCB aims to reduce the practice of crop residue burning and contribute to environmental sustainability in the designated regions. Interested parties are encouraged to apply for the scheme and contribute to the circular economy by effectively managing paddy straw waste.

Documentation required- application form along with following documents

Ø Registration certificate of company.

Ø Proof of land ownership/ lease agreement where the proposed unit is to be setup.

Ø Undertaking by the applicant that their unit is not receiving any form of financial assistance for pelletisation plant from any other Central Government scheme.

Ø Consent To Establish (CTE) from PPCB and other statutory approvals.

Ø Preference to units having.

Ø Agreement with local farmers for supply of paddy straw.

Ø  Committed sale of paddy straw pellets produced by the unit.

Procedure for applying

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Ø Application with all the supporting documents to be submitted online to Central Pollution Control Board through Application form.

Ø Application received will be forwarded to PPCB.

Ø Appraisal of the application by PPCB and forward it to CPCB along with its recommendations.

Ø Evaluation of application by a committee constituted by CPCB.

Ø Approval for release of funds based on the recommendation of the committee.

Ø Release the funds to PPCB by CPCB.

Ø Machinery required for Paddy straw pelletisation Release of financial support amount directly into the earmarked account. However, funds will only be released once the PPCB has granted CTE to the applicant.

Ø Submission of bank guarantee equivalent to the amount of the financial support released in the name of PPCB by the applicant before the release of financial support, with a validity of minimum 01 year. The bank guarantee to be released back to the applicant after start of commercial production i.e. submission of first invoice for sale of product.

Ø PPCB to monitor:

Ø The progress of the project and ensure its timely completion.

Ø Paddy straw utilization in the pelletisation plant and ensure that only paddy straw is used for producing pellets.