News Excerpt:

The Government of India released Crop Residue Management (CRM) operational guidelines 2023-24 for Uttar Pradesh, Haryana, Punjab, Madhya Pradesh and the national capital territory of Delhi in July 2023.

Aim of the CRM guidelines:

• The main objectives of the CRM guideline are to reduce the amount of pollution generated when stubble is burnt and to encourage more industry-farmer participation in the agri-residue supply chain to support bioenergy plants. 
• Burning one tonne of paddy straw releases 3 kilogramme particulate matter, 60 kg CO, 1,460 kg CO2, 199 kg ash and 2 kg SO2 into the environment.

Key Highlights of the guideline:

• Under the scheme, the machinery required for biomass aggregation that includes tractors, balers, rakers, among others would need a 65 per cent investment from the government, 25 per cent from the industry and the remaining 10 per cent from the farmer-producer organisation.
• According to the guidelines, the indicative expenditure for setting up the paddy straw supply chain machinery comes up to around Rs 1 crore (for 3,000 tonnes paddy straw per season) and Rs 1.8 crore (for 4,500 tonnes paddy straw per season), out of which the government will give subsidy on the rounded off amount of Rs 1.5 crore.
• The Department of Agriculture & Farmers Welfare (DA&FW) and State Agricultural Departments have been chosen as the central regulatory bodies for this scheme. 
• The scheme aims to collect 1.5 million tonnes of paddy straw in the next three years by establishment of 333 collection centres with a total financial assistance of Rs 600 crore.
• Centre has approved financial assistance Rs 564.75 crore from FY 2023-24 to FY 2026-27 for compressed biogas producers to buy biomass machinery aiding biomass collection, with a subsidy cap of 50% on the procurement cost. 
• The scheme is expected to support 100 CBG plants in the first phase.

Significance of the guideline:

• The CRM initiative can help avoid the pollution through the establishment of an agri-residue biomass supply chain from the farmers to the bioenergy industry like power generation units, compressed biogas (CBG) plants, 2G ethanol factories, which could strengthen their feedstock supply chain and benefit the biofuel industry as a whole.
• The farmers and the industry both benefit from this scheme, as it becomes an extra source of income for the farmers and provides the industry with suppliers of feedstock.
• The supply chain that may be formed through this project will assist farmers and industry recognise one another and collaborate while profiting financially. 
• This also contributes to the production of green energy.

Challenges in the CRM guidelines:

• The farmers or the farmer-producer organisations (FPO) will get their subsidised amounts through direct beneficiary transfer, but there isn’t any clarity on - 
• Whether the transfer will happen to the equipment supplier after deducting the subsidy amount (which will then be credited to the equipment supplier’s account), 
• Or if the farmers will have to pay the entire required amount in advance to the equipment supplier, and then avail the subsidy amount.
• If farmers have to pay the total amount in advance, it might be difficult for farmers to procure machinery even while contributing only 10% of the share. 
• As the required machinery for this project will be expensive and could be out-of-budget for most farmers intending to participate.
• The farmers or the FPOs are also directed to identify and bargain with the industry independently. 
• This would require the farmers to have adequate knowledge of the bioenergy industry in their area and the correct market price for their produce. 
• Since the industry is just taking off, it is unfair to assume that the farmers would have this information already. 
• Putting this much onus on the farmers might hinder the process of the scheme taking off as this would require a substantial amount of time and energy from the farmers.
• The equipment purchased by the beneficiaries (farmer-producer organisations) and the industry will only be in use three months out of 12. 
• Its utilisation and revenue-sharing model on the remaining nine months and the responsibilities of the industry and the beneficiaries respectively need to be laid out clearly in the guidelines document.

CRM 2023-24 v/s CRM 2020-21 document:

The 2020-21 document focused solely on management of crop residue through custom hiring centres, while the 2023-24 document talked extensively about the use of this biomass in the bioenergy industry.

Conclusion:

• While the implementation of these guidelines may face some roadblocks due to the challenges one faces on ground, the scheme overall is a positive step in the direction of adoption of bioenergy in India. 
• The aspect of decentralisation and involvement of all stakeholders will make it easier to make decisions and implement them on the ground level when one is not left waiting for approvals from the Centre. 
• This change also benefits the farmers directly financially and in terms of capacity building. 
• The early stages of the intervention may be a challenge, but this can bear good results in the long term.

Additional information:

Bioenergy: 

• It is a form of renewable energy that is derived from recently living organic materials known as biomass, which can be used to produce transportation fuels, heat, electricity, and products.
• The bioenergy industry has been struggling with issues of financing, and identifying sources for  procurement of feedstock. They have also been struggling as the prices of different kinds of feedstock increase.
• India has embarked upon an ambitious energy transition journey with a target of fifty percent cumulative electric power installed electricity capacity from non-fossil fuel-based energy resources by 2030 and achieving net zero by 2070. 
• To attain the ambitious Renewable Energy targets and to achieve self-reliance in the energy sector, it is imperative that domestically available Renewable Energy alternatives are optimally utilised. One such alternative is modern bioenergy. 
• With a large surplus of biomass and other waste available in the country, energy recovery from these resources is a viable solution. 
• Modern bioenergy is unique as it provides several social and environmental benefits apart from providing clean fuels. 
  • For example, bioenergy applications can help mitigate air, water, and land pollution. 
  • It can also create local jobs, and business opportunities, and reduce energy import bills. 
  • It can help develop decentralised and independent communities. 
  • There are benefits to the private sector, as well, in the form of opportunities to decarbonise their industries. 
  • Other benefits include savings on fertiliser subsidies and a reduction in waste management costs. 
  • Therefore, the Ministry of New and Renewable Energy (MNRE) has notified the National Bioenergy Programme for a period 01.04.2021 to 31.03.2026 with an outlay of Rs.858 crore under Phase-I.
• The National Bioenergy Programme will comprise the following sub-schemes:
  • Waste to Energy Programme (Programme on Energy from Urban, Industrial and Agricultural Wastes /Residues)
  • Biomass Programme (Scheme to Support Manufacturing of Briquettes & Pellets and Promotion of Biomass (non-bagasse) based cogeneration in Industries)
  • Biogas Programme (financial assistance for the setting up of biogas plants from 1 to 2500 cubic meter biogas per day.)