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Cellulose is the most abundant biomass on the earth. It is the structural component of primary cell wall of green plants,
many forms of algae and oomycetes. It is possible to transform the insoluble polymer into glucose, an excellent substrate
for industrial fermentation by using chemical and physical methods. In the present study, samples of soil and cow dung were
collected from different locations of Punjab and Himachal Pradesh for isolation of cellulose degrading bacterial strains. The
most efficient cellulose degrading bacteria was found in cow dung sample with maximum zone of inhibition of 10 mm. The
selected efficient isolate was characterized by biochemical and microscopic methods and found to be Bacillus sp. Different types
of substrates like baggase, wheat bran, paddy straw, rice bran and wheat straw were used for maximum degradation of cellulose
and cellulase producing ability. Various parameters like pH, temperature, inoculum concentration, incubation time, carbon
and nitrogen source was studied for maximum degradation of cellulose and cellulase producing ability. Selected bacterial strain
showed maximum growth and cellulase production at 37oC and at pH 7.0 with 2% (v/v) inoculum concentration after 72 hours
of incubation by using peptone at concentration of 1% (w/v). The best induction was also exhibited by use of carboxymethyl
cellulose (CMC) at 1% (w/v) concentration.