The Indian state of Bihar is constructing its first biomass-based multi-fuel captive power plant at Giddha Industrial Growth Centre. The plant is due to come online in December 2011.

The plant will use rice husk as fuel. When rice husk is not available, it will burn coal. Sanjay Goenka, general secretary of Bihar Industries Association (BIA) said that the paper mill installing the power plant would manufacture paper for cardboard and craft paper.

The power plant is being set up with a 60 per cent subsidy from the state government, payable on purchase of plant and machinery for captive power plants of 1-3 MW capacity, and using biomass as the fuel in accordance with the state’s Industrial Incentive Policy 2011.

This policy also provides for a 50 per cent subsidy on the purchase of plant and machinery for setting up captive power plants using coal.

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