Power Plants Hit With ₹61.85 Crore Fine Over Failure to Blend Biomass, Fueling Air Quality Crackdown

CAQM Imposes Major Environmental Penalty on Six Power Units Near Delhi​

The Commission for Air Quality Management in NCR and Adjoining Areas (CAQM) has levied a substantial Environmental Compensation (EC) of approximately ₹61.85 crore. This penalty targets six Thermal Power Plants (TPPs) situated within a 300 km radius of Delhi. The action was taken due to the non-compliance of these units with mandatory biomass co-firing standards.

The primary violation centers on the failure to adhere to statutory provisions. These rules mandate that all coal-based TPPs must utilize a 5% blend of biomass pellets or briquettes made from paddy straw alongside coal. Furthermore, a minimum co-firing threshold of 3% was prescribed for the fiscal year 2024-25.

Regulatory Mandate Aims to Combat Crop Burning Pollution​

The Environmental (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023, underpin these stringent guidelines. Their implementation is crucial for several environmental goals. These include promoting the ex-situ management of crop residue, significantly reducing the incidence of paddy straw burning, and thereby mitigating air pollution across the NCR and adjacent regions.

The Commission has maintained vigilance on these protocols. This has involved issuing Statutory Direction No. 42 on September 17, 2021. Compliance has been continuously monitored through periodic reviews, joint inspections, and extensive stakeholder consultations.

Findings Show Widespread Non-Compliance Among Units​

During the comprehensive compliance review for the 2024-25 period, six TPPs were identified as non-compliant. To assess the matter, a specialized Committee was constituted. This committee comprised experts from CAQM, the Central Electricity Authority (CEA), SAMARTH, and the Central Pollution Control Board (CPCB).

The committee reviewed the performance data, compliance status reports, and the written submissions from the TPPs. They also heard personal representations from the concerned power generation entities regarding possible relaxation of the Environmental Compensation.

Breakdown of Environmental Compensation Imposed​

After a detailed review of the replies from the six non-compliant TPPs, the Committee concluded that the reasons provided did not adequately demonstrate earnest attempts at compliance with the Statutory Directions. Consequently, the Committee recommended imposing the Environmental Compensation across the affected units.

The penalty distribution is as follows:

• Talwandi Sabo Power Limited (TSPL - Vedanta), Mansa, Punjab: around ₹33.02 crore
• Panipat Thermal Power Station (PTPS), Haryana Power Generation Corporation Limited (HPGCL): around ₹8.98 crore
• Deenbandhu Chhotu Ram Thermal Power Plant (DCRTPP), HPGCL: around ₹6.69 crore
• Rajiv Gandhi Thermal Power Plant (RGTPP), HPGCL: around ₹5.55 crore
• Guru Hargobind Thermal Power Plant (GHTPP), Punjab State Power Corporation Limited (PSPCL): around ₹4.87 crore
• Harduaganj Thermal Power Station (HTPS), Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL): around ₹2.74 crore

Cumulatively, the imposed Environmental Compensation amounts to approximately ₹61.85 crore.

Strict Adherence Deadline Issued by Commission​

The Commission has issued a direct order to the concerned TPPs. They must deposit the entire imposed Environmental Compensation by April 15, 2026. Proof of this deposit must subsequently be submitted to the Commission for record.

The CAQM used this action to reiterate the critical importance of biomass co-firing. This method is vital for the ex-situ management of crop residue and curbing air pollution in the NCR region. The Commission affirmed its commitment to strict enforcement of all Statutory Directions, promising continuous and close monitoring of compliance across all regulated entities.