Industrial units around Delhi turn to biomass as govt imposes ban on coal

Panipat, Jan 25 (KNN) Around half of the 1,695 units in a cluster of small industries around New Delhi have shifted to biomass due to the ban on coal by the government, according to a report in the Reuters.

Coal up until now was the primary fuel for about a quarter of all industries in Haryana’s three major clusters near New Delhi.

As per the report, the Textile recyclers, dyers and food processors in Panipat city, along with those in neighbouring Sonipat and Faridabad, have now quickly switched away from coal, the previous fuel of choice.

“It has been easier for small industries to convert to biomass instead of converting to natural gas because of lower prices,” Monish Ahuja, chairman of the Confederation of Biomass Energy Industry of India, told Reuters.

Singh pointed out that about 81 per cent of the 398 industrial units operating in Panipat alone have converted to biomass.

Industries are experimenting with agricultural waste such as rice husk, groundnut and mustard briquettes as fuel, regulators and owners of small textile and recycling mills in Panipat said.

However, the biomass traders and consumers are concerned over the rising prices after the coal ban and seasonal fluctuations in the supply of crop residue.

Average prices of biomass briquettes rose 36 per cent to 7,711 rupees a kg by the end of 2022, versus 5,677 rupees at the end of 2021, said an online marketplace BiofuelCircle, based in Pune.

But owners of industrial units in Panipat said the local nature of New Delhi’s coal ban confers a cost advantage on similar industries elsewhere in India, as they can continue using coal.

“Because of these restrictions, Panipat industries are finding it extremely difficult to compete,” said Bhim Rana, president of a dyers’ association in the city.  (KNN Bureau)