The mycelial growth and colony characteristics of ten fungal isolates grown on Potato Dextrose Agar (PDA) medium were observed after seven days of inoculation at 25 ± 10C. The colony characteristic features appeared to be typical and varied with the species which is presented in the present study. The ten fungal isolates have been screened for its ligninolytic; cellulolytic and xylanolytic activity. Results show 4 of the fungal isolates to be lignin degraders as well as xylanase producers indicating its potential applications in paper industry for bio-bleaching process. Three species of Pleurotus and Phellinus pectinatus are selective lignin degraders having its application in bio-pulping. The two species of Trichoderma are ligninolytic as well as cellulolytic and xylanolytic. Pleurotus sajorcaju showing ligninolytic and xylanolytic activity it was selected for co-culture experiments and found to be compatible with Daedaleopsis confragrosa and Phellinus pectinatus.
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