CAQM Slaps Rs 61.85 Crore Fine on 6 Power Plants Near Delhi for Flouting Biomass Rules
6 Power Plants Fined Rs 61.85 Cr for Ignoring Biomass Rules

The Commission for Air Quality Management (CAQM) has taken stringent action against six thermal power plants (TPPs) operating in the vicinity of the national capital for their failure to adhere to crucial environmental norms. The regulator has issued show-cause notices to these plants and proposed a combined environmental compensation of approximately Rs 61.85 crore for not complying with mandatory provisions on co-firing biomass pellets made from crop residue.

The Crackdown on Non-Compliant Power Plants

The action targets plants located within a 300-kilometer radius of Delhi. These facilities have been directed to submit their written explanations to the Commission within 15 days. The CAQM has warned that a failure to respond could trigger further legal action under the Commission for Air Quality Management in National Capital Region and Adjoining Areas Act, 2021, including proceedings under its Section 14.

This decisive move follows a comprehensive review of compliance for the financial year 2024–25, based on official data submitted by the Union Ministry of Power. Currently, there are 11 thermal power plants with 35 units within the specified radius of Delhi, boasting a total installed capacity of 13,575 MW. The six plants found non-compliant are:

  • Talwandi Sabo Power Limited (TSPL – Vedanta), Punjab: Facing the highest proposed fine of Rs 33.02 crore.
  • Panipat Thermal Power Station (PTPS), Haryana: Proposed EC of Rs 8.98 crore.
  • Deenbandhu Chhotu Ram Thermal Power Station (DCRTPS), Haryana: Proposed EC of Rs 6.69 crore.
  • Rajiv Gandhi Thermal Power Plant (RGTPP), Haryana: Proposed EC of Rs 5.55 crore.
  • PSPCL – Guru Hargobind Thermal Power Plant, Punjab: Proposed EC of Rs 4.87 crore.
  • Harduaganj Thermal Power Station (UPRVUNL), Uttar Pradesh: Proposed EC of Rs 2.74 crore.

The Mandate for Biomass Co-Firing

The legal basis for this action stems from the Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023. These rules mandate that coal-based thermal power plants use a minimum 5% blend of biomass pellets or briquettes along with coal. For the financial year 2024–25, the threshold to avoid environmental compensation was set at more than 3% co-firing.

In an official statement, the CAQM clarified the purpose of these regulations. "These statutory provisions were notified to promote ex-situ management of paddy straw, curb stubble burning and reduce air pollution in NCR and adjoining areas," the Commission said. The policy is a key strategy to tackle the annual air quality crisis in northern India by providing a sustainable market for crop residue, which farmers would otherwise burn in their fields.

Implications for Air Quality and Future Compliance

This enforcement action sends a strong signal about the seriousness with which authorities are treating the issue of air pollution mitigation. By imposing substantial financial penalties, the CAQM aims to ensure strict adherence to the biomass co-firing rules, which are critical for reducing the dependence on fossil fuels and managing agricultural waste effectively.

The proposed fines underscore the regulatory shift from issuing advisories to enforcing compliance with tangible economic consequences. The success of this ex-situ crop residue management strategy hinges on the full participation of the power sector. The response from the six cited plants and their subsequent actions will be closely watched, as it will set a precedent for environmental accountability among industrial units contributing to the region's pollution load.