CAQM Imposes Rs 618.5 Million Compensation On Six Power Plants

09 Apr 2026 CW Team

The Commission for Air Quality Management in NCR and Adjoining Areas imposed environmental compensation of Rs 618.5 million (mn) on six thermal power plants within 300 km of Delhi for failing to use a five per cent blend of biomass pellets or briquettes with coal. The Environmental (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023 require coal-based plants to utilise a five per cent blend, with a minimum three per cent co-firing prescribed for FY 2024-25 to avoid compensation. The provisions aim to promote ex-situ management of crop residue and to reduce paddy straw burning and related air pollution in the region.

A committee with representatives from the Commission, the Central Electricity Authority, SAMARTH and the Central Pollution Control Board reviewed compliance for 2024-25, examined data and submissions, and held hearings. It found that the explanations provided by the six plants did not show earnest efforts to comply.

The committee recommended compensation for the named plants. Talwandi Sabo Power Limited, Mansa, Punjab: Rs 330.2 mn; Panipat Thermal Power Station, Haryana Power Generation Corporation Limited: Rs 89.8 mn; Deenbandhu Chhotu Ram Thermal Power Plant, HPGCL: Rs 66.9 mn; Rajiv Gandhi Thermal Power Plant, HPGCL: Rs 55.5 mn; Guru Hargobind Thermal Power Plant, Punjab State Power Corporation Limited: Rs 48.7 mn; Harduaganj Thermal Power Station, Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited: Rs 27.4 mn.

The total compensation amounts to Rs 618.5 mn and the Commission has directed the concerned entities to deposit the sums by 15.04.2026 and to submit proof of payment. The Commission said biomass co-firing is crucial for ex-situ management of crop residue, reducing paddy straw burning and mitigating air pollution in the national capital region and adjoining areas, and it will continue strict enforcement and monitoring.

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