Date: 2026-04-08Category: Press ReleaseState: Union GovernmentCountry: India
CAQM imposes Environmental Compensation of around Rs. 61.85 crore on Six Thermal Power Plants within 300 km of Delhi for Non-compliance with Biomass Co-firing Norms
**Executive Summary**
The Commission for Air Quality Management (CAQM) has imposed an Environmental Compensation (EC) totaling approximately Rs. 61.85 crore on six Thermal Power Plants (TPPs) located within 300 km of Delhi. These penalties result from non-compliance with statutory mandates for biomass co-firing during the 2024-25 period. Impacted entities are required to deposit the imposed compensation and provide proof of payment to the Commission by April 15, 2026.
**Key Points / Main Content**
**Statutory Requirements and Objectives**
* **Co-firing Mandates:** Under the Environmental (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023, TPPs must use a 5% blend of biomass pellets or briquettes made of paddy straw alongside coal.
* **Compliance Threshold:** For the 2024-25 financial year, a minimum threshold of 3% co-firing was prescribed to avoid Environmental Compensation.
* **Regulatory Goals:** The provisions aim to promote ex-situ management of crop residue, reduce paddy straw burning, and mitigate air pollution in the National Capital Region (NCR).
**Compliance Monitoring and Review**
* **Regulatory Oversight:** Compliance is monitored via Statutory Direction No. 42, periodic reviews, stakeholder consultations, and joint inspection visits.
* **Review Committee:** A specialized committee comprising members from CAQM, the Central Electricity Authority (CEA), SAMARTH, and the Central Pollution Control Board (CPCB) evaluated the performance of the TPPs.
* **Findings:** The committee determined that the six non-compliant TPPs failed to provide evidence of earnest efforts to adhere to statutory directions, leading to the recommendation of financial penalties.
**Details of Environmental Compensation Imposed**
* **Talwandi Sabo Power Limited (Vedanta), Punjab:** ~Rs. 33.02 crore.
* **Panipat Thermal Power Station (HPGCL), Haryana:** ~Rs. 8.98 crore.
* **Deenbandhu Chhotu Ram Thermal Power Plant (HPGCL), Haryana:** ~Rs. 6.69 crore.
* **Rajiv Gandhi Thermal Power Plant (HPGCL), Haryana:** ~Rs. 5.55 crore.
* **Guru Hargobind Thermal Power Plant (PSPCL), Punjab:** ~Rs. 4.87 crore.
* **Harduaganj Thermal Power Station (UPRVUNL), Uttar Pradesh:** ~Rs. 2.74 crore.
**Impact Analysis**
**Non-compliant Thermal Power Plants (TPPs)**
**Impact**
These entities are subject to heavy financial penalties totaling over Rs. 61.85 crore due to their failure to meet the minimum 3% biomass co-firing threshold for FY 2024-25.
**Action Required**
The TPPs must deposit the specific Environmental Compensation amounts by the deadline of April 15, 2026, and submit formal proof of the deposit to the CAQM.
**Commission for Air Quality Management (CAQM)**
**Impact**
The Commission is reinforced as a strict enforcement body for environmental norms in the NCR and adjoining areas.
**Action Required**
The Commission will continue to pursue strict enforcement of Statutory Directions and monitor the compliance of all regulated entities to ensure adherence to biomass co-firing norms.
Key Entities Referenced
Commission for Air Quality Management in NCR and Adjoining Areas (CAQM): The primary regulatory body responsible for monitoring air quality and enforcing environmental compliance, including the imposition of compensation on non-compliant power plants.
Environmental (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023: Statutory rules that mandate coal-based thermal power plants to utilize a blend of biomass pellets or briquettes to manage crop residue and mitigate air pollution.
Sustainable Agrarian Mission on use of Agri-Residue in Thermal Power Plants (SAMARTH): A specialized initiative and committee member involved in reviewing compliance data and representations from thermal power plants regarding biomass co-firing.
NCR and Adjoining Areas: The central geographic focus of the policy where air pollution mitigation and ex-situ management of crop residue are prioritized.
Ministry of Environment, Forest and Climate Change
CAQM imposes Environmental Compensation of
around Rs. 61.85 crore on Six Thermal Power
Plants within 300 km of Delhi for Non-compliance
with Biomass Co-firing Norms
Posted On: 08 APR 2026 4:56PM by PIB Delhi
The Commission for Air Quality Management in NCR and Adjoining Areas (CAQM) has imposed
Environmental Compensation (EC) of around Rs. 61.85 crore on six Thermal Power Plants (TPPs) located
within a radius of 300 km of Delhi. The step was taken for non-compliance with statutory provisions
mandating the use of 5% blend of biomass pellets or briquettes made of paddy straw along with coal.
The Environmental (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. These statutory provisions were notified with the objective of promoting ex-situ
management of crop residue, reducing instances of paddy straw burning, and mitigating air pollution in
NCR and adjoining areas. The Commission has also issued Statutory Direction No. 42 dated 17.09.2021
and has continuously monitored compliance through periodic reviews, facilitated stakeholder
consultations and joint inspection visits.
During review of compliance for the period 2024-25, six TPPs were found non-compliant. Accordingly, a
Committee comprising members from CAQM, Central Electricity Authority (CEA), Sustainable Agrarian
Mission on use of Agri-Residue in Thermal Power Plants (SAMARTH) and Central Pollution Control
Board (CPCB) was constituted. The Committee reviewed and considered representations submitted by
TPPs with respect to relaxation on Environmental Compensation for non-utilisation of crop residue on a
case-to-case basis. It examined performance data, compliance status, written submissions and grounds
cited by the TPPs and provided opportunity of personal hearing to the concerned entities.
The replies of the six non-compliant TPPs were reviewed in detail and it was observed that the reasons
provided did not establish that the entities tried earnestly to comply with the Statutory Directions.
Accordingly, the Committee submitted its report recommending imposition of Environmental
Compensation on the following non-compliant TPPs:
• Talwandi Sabo Power Limited (TSPL - Vedanta), Mansa, Punjab – around Rs. 33.02 crore
• Panipat Thermal Power Station (PTPS), Haryana Power Generation Corporation Limited
(HPGCL) – around Rs. 8.98 crore
• Deenbandhu Chhotu Ram Thermal Power Plant (DCRTPP), HPGCL – around Rs. 6.69 crore
• Rajiv Gandhi Thermal Power Plant (RGTPP), HPGCL – around Rs. 5.55 crore
• Guru Hargobind Thermal Power Plant (GHTPP), Punjab State Power Corporation Limited
(PSPCL) – around Rs. 4.87 crore• Harduaganj Thermal Power Station (HTPS), Uttar Pradesh Rajya Vidyut Utpadan Nigam
Limited (UPRVUNL) – around Rs. 2.74 crore
The total Environmental Compensation imposed across these six non-compliant TPPs amounts to around
Rs. 61.85 crore. The Commission has directed the concerned TPPs to deposit the imposed Environmental
Compensation latest by 15.04.2026 and submit proof of such deposit to the Commission.
With this step, the Commission reiterated that biomass co-firing in Thermal Power Plants is a crucial
measure for effective ex-situ management of crop residue, reducing instances of paddy straw burning, and
mitigating air pollution in NCR and adjoining areas. The Commission would continue to pursue strict
enforcement of Statutory Directions and monitor compliance closely to ensure that all regulated entities
adhere to the prescribed norms.
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VM/GS
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