CAQM slaps Rs 61 crore penalty on six thermal power plants over biomass co-firing lapse

New Delhi: The Commission for Air Quality Management (CAQM) has imposed environmental compensation totalling nearly Rs 61 crore on six coal-based thermal power plants located within a 300 km radius of Delhi for failing to co-fire crop residue-based biomass pellets with coal.

Of the six plants penalised, three are located in Haryana, two in Punjab and one in Uttar Pradesh. The commission has directed the plants to deposit the compensation by April 15.

CAQM said the action was taken under rules mandating all coal-based thermal power plants to utilise a 5% blend of biomass pellets or briquettes along with coal. A minimum co-firing threshold of 3% has been prescribed for 2024-25 to avoid the imposition of environmental compensation.





The mandate is part of an ex-situ crop residue management strategy aimed at reducing stubble burning in neighbouring states, particularly after the paddy harvest in winter. Emissions from stubble burning contribute significantly to air pollution in Delhi and adjoining regions during the peak winter pollution season. Farmers often burn stubble to clear fields quickly between harvesting and sowing cycles. By promoting the use of agricultural waste in power generation, the policy seeks to provide a sustainable disposal mechanism for farmers while reducing dependence on coal.

“The Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023 mandate all coal-based TPPs to utilise a 5% blend of biomass pellets or briquettes along with coal, with a minimum threshold of 3% co-firing prescribed for FY 2024-25 to avoid imposition of environmental compensation,” CAQM said in a communication issued on Wednesday. “The statutory provisions aim to promote ex-situ management of crop residue, reduce paddy straw burning, and mitigate air pollution in NCR and adjoining areas.”

During a compliance review for 2024-25, the commission found six plants in violation of the rules and constituted a multi-agency committee comprising representatives from the Central Electricity Authority, the Central Pollution Control Board (CPCB), and the SAMARTH Mission to examine the responses submitted by the plants.

“Despite being given multiple opportunities for representation and personal hearings, the committee concluded that the plants had not made sufficient efforts to comply with statutory directions,” CAQM said.

Among the defaulters, Talwandi Sabo Power Limited in Punjab faces the highest penalty of around Rs 33 crore. Other plants penalised include Panipat Thermal Power Station (Rs 8.9 crore), Deenbandhu Chhotu Ram Thermal Power Plant (Rs 6.7 crore) and Rajiv Gandhi Thermal Power Plant (Rs 5.5 crore) in Haryana; Guru Hargobind Thermal Power Plant in Punjab (Rs 4.9 crore); and Harduaganj Thermal Power Station in Uttar Pradesh (Rs 2.8 crore).

CAQM said it will continue close monitoring and periodic reviews to ensure compliance by all thermal power plants.
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