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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