The committee, headed by Agriculture department secretary K S Pannu, will find ways to implement the project in the state in collaboration with a private firm.
A decision to this effect was taken by the Chief Minister at a meeting with company representatives and officials of the Industry and Pollution Control departments here today.
The Chief Minister asked Pannu to study all aspects of the project so that it could be effectively implemented in the state for the benefit of farmers.
Representatives of 'Riela' company, led by Karl Heinz Knoop, gave a presentation regarding the project to the Chief Minister and apprised him about the technology through which the agriculture waste would be utilized for producing fuel which would act as an alternative to coal.
The Chief Minister was told that the company would purchase the agriculture waste like straw from farmers.