The petroleum company has entered into a partnership with OUAT for effective utilisation of rice straw for bio-fuel production in a bio-chemical enzymatic process with a financial support of Rs 5 crore, said a senior government official.
The agreement was signed in presence of Union Petroleum Minister Dharmendra Pradhan and state's Principal Secretary, Agriculture, Saurabh Garg, at a function here.
At present, the state yields 85 lakh tonne rice and around 100 lakh tonne rice straw annually, the official said.
Of the total budget allocation, Rs 3 crore will be used as research contingency for development, establishment and popularisation of the bio-fuel production technology, it said.
This endeavour is in line with the Centre's policy decision for supplementation of 10 per cent straw-based ethanol to increase fuel efficiency and reduce pressure on fossil fuels.