Punjab government on Monday signed a memorandum of understanding (MoU) with the Indian Oil Corporation Ltd for setting up a biogas and bio-CNG plants in the state to find sustainable solutions to paddy straw burning, which has emerged as a major environmental concern. The MoU with IOC was signed by Punjab Bureau of Industrial Promotion (PBIP) and Punjab Energy Development Agency (PEDA), in the presence of chief minister Amarinder Singh. The plants will be set up at a total investment of Rs 5,000 crore, and will generate employment for around 4,000 people. The project will be initiated with 42 plants becoming operational in 2018, probably before the paddy season.