Set up over an area of 15 acres at a cost of Rs 64 crore, the 9.9 MW project comes up under state's Renewable Energy Power Policy, a spokesperson of Haryana Renewable Energy Development Agency said.
An MoU was signed between the agency and a Delhi-based private firm for the project.
The plant will use mustard stalk and other agro biomass as fuel for power generation, and adequate arrangement for fuel supply on everyday basis has been made by the government.
Haryana has a potential to generate about 1000 MW power from agro biomass.