Punjab Energy Development Agency (PEDA) has signed a memorandum of understanding (MoU) with GAIL (India) Limited for setting up 10 crop-residue based compressed biogas (CBG) projects along with some new and renewable energy projects in the state.

As per the MoU, the state will utilise 0.5 million tonnes per annum (mtpa) paddy straw to generate 35,000 tonnes of biogas and 8,700 tonnes of organic manure annually.

The plants will be established at an estimated cost of Rs 6 billion.