CAQM imposes Rs 61.85 crore penalty on six thermal plants
Author: PPD Team Date: April 9, 2026
India’s air quality regulator has imposed penalties totalling about Rs 61.85 crore ($7.4 million) on six coal-fired thermal power plants for not complying with biomass co-firing requirements under national environmental rules.
The Commission for Air Quality Management in the National Capital Region and Adjoining Areas (CAQM) took action after a compliance review found that the six plants, all located within 300 km of Delhi, had not met the mandated 5% biomass co-firing target under the Environmental Regulations on the Use of Crop Residues by Thermal Power Plants, 2023. For the 2024–25 financial year, a minimum co-firing level of 3% had been set to avoid penalties.
The regulation requires coal-based plants to replace part of their fuel with pellets or briquettes made from paddy straw. This agricultural residue is commonly burned in fields after harvest, contributing to seasonal air pollution in Delhi and surrounding regions.
After reviewing written submissions and conducting personal hearings, a multi-agency committee concluded that none of the plants had shown adequate efforts to comply. The penalties imposed are as follows:
All six plants have been directed to deposit the environmental compensation by April 15, 2026.
The CAQM, which first issued directions on biomass co-firing in September 2021, stated that the enforcement action is part of a wider effort to curb stubble burning in Punjab, Haryana, and Uttar Pradesh. It also highlighted field-level residue management measures, including mechanical baling, as complementary interventions to reduce open burning and improve air quality in the Delhi-NCR region.
The commission added that compliance across all regulated plants will continue to be monitored, with further enforcement action as needed.
Note: HVUNL – Haryana Vidyut Utpadan Nigam Limited; PSECL – Punjab State Power Corporation Limited; UPSGCL – Uttar Pradesh State Power Generation Corporation Limited.
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