An MoU has been signed by the Punjab Energy Development Agency (PEDA) and GAIL (India) Limited to establish ten compressed biogas plants as well as additional new and renewable energy projects throughout the state.

Executive Director RK Singhal of GAIL (India) and CEO of PEDA Amarpal Singh signed the memorandum of agreement (MoU), according to a press statement.

Speaking about the pact, Punjab New and Renewable Energy Sources (NRES) Minister Aman Arora said the pact will help the state to manage five lakh tonnes of paddy straw per annum and generate clean energy out of it.

“Punjab is an agrarian state, and it has immense potential for crop residue-based CBG plants,” he said, adding that the Punjab government's business-friendly policies are helping in facilitating companies to set up their industries in the state.

NRES Secretary Ravi Bhagat said that with the implementation of these 10 projects, paddy straw in around 1.25 lakh acres is expected to be prevented from being burnt.