₹61.85 Crore Penalty on Six Power Plants for Ignoring Biomass Mandate Near Delhi

The Commission for Air Quality Management has imposed environmental compensation of approximately ₹61.85 crore on six coal-based thermal power plants located within a 300-kilometre radius of Delhi for failing to comply with statutory rules mandating the use of biomass fuel blended with coal.

The penalties follow a compliance review for the financial year 2024–25, which found that the plants had not adhered to mandatory regulations requiring the use of biomass pellets or briquettes made from paddy straw. The policy is intended to tackle crop residue burning and reduce the severe air pollution that frequently affects the National Capital Region and neighbouring states.

Under the Environmental Regulations on the Use of Crop Residues by Thermal Power Plants, 2023, all coal-fired thermal power plants are required to blend at least five per cent biomass pellets or briquettes with coal. For the financial year 2024–25, a minimum co-burning limit of three per cent was set to avoid environmental compensation. The regulation was introduced to promote on-site management of crop residues, curb the burning of paddy stubble, and improve air quality in the National Capital Region and adjoining areas.

The Commission had earlier issued Statutory Direction No. 42 on 17 September 2021 and has been monitoring compliance through periodic reviews, stakeholder consultations, and joint inspection visits.

Committee Review Rejects Requests for Penalty Waiver

During the compliance assessment for 2024–25, six thermal power plants were found to violate the biomass co-firing requirement. Following this, a committee was constituted comprising members from the Commission for Air Quality Management, the Central Electricity Authority, the Mission for Sustainable Agriculture under SAMARTH, and the Central Pollution Control Board.

The committee examined representations submitted by the thermal power plants seeking a waiver of environmental compensation for failing to use crop residues. Each case was reviewed individually. The panel assessed performance data, compliance records, written submissions, and explanations submitted by the plants. The concerned entities were also given an opportunity for personal hearings before the final decision.

After reviewing the responses, the committee concluded that the reasons provided by the plants did not demonstrate that sincere efforts had been made to comply with the statutory directives.

Plants Across Three States Face Penalties

Based on the committee’s recommendations, penalties were imposed on six plants located across Punjab, Haryana, and Uttar Pradesh.

Talwandi Sabo Power Limited, operated by Vedanta in the Mansa district of Punjab, has been fined approximately ₹33.02 crore, the highest among the plants found in violation. The Panipat Thermal Power Station, operated by Haryana Vidyut Utpadan Nigam Limited, faces a penalty of about ₹8.98 crore.

The Deenbandhu Chhotu Ram Thermal Power Plant in Haryana has been penalised around ₹6.69 crore, while the Rajiv Gandhi Thermal Power Plant in the state faces environmental compensation of approximately ₹5.55 crore. The Guru Hargobind Thermal Power Plant, operated by Punjab State Electricity Corporation Limited, has been fined around ₹4.87 crore. The Harduaganj Thermal Power Station, run by Uttar Pradesh State Power Generation Corporation Limited, has been ordered to pay about ₹2.74 crore.

The Commission has directed all six plants to deposit the environmental compensation by 15 April 2026 and submit proof of payment to the regulator.

Biomass Co-Firing Seen as Key to Reducing Stubble Burning

The Commission reiterated that biomass co-combustion in thermal power plants, along with effective field management of crop residues, such as removal of residues from farms and baling through specialised machines, is a critical strategy to reduce paddy stubble burning.

Using agricultural residue as fuel not only helps manage crop waste but also contributes to reducing pollution levels in the National Capital Region.

The Commission stated that it will continue to monitor compliance closely and ensure strict adherence to the statutory directives so that all regulated entities follow the prescribed norms aimed at improving air quality in and around Delhi.