MoP revises ash utilisation norms for thermal power plants

The Ministry of Power (MoP) has issued revised guidelines mandating coal and lignite-based thermal power plants (TPPs) to achieve 100 per cent ash utilisation in line with notifications of the Ministry of Environment, Forest and Climate Change (MoEF&CC), while limiting the tariff impact on electricity consumers. The revised framework replaces the MoP guidelines dated March 15, 2024, and was approved by the Union Minister for Power and Housing & Urban Affairs.

Under the revised procedure, TPPs are required to declare the quantity of “issuable ash” before initiating disposal. This includes fly ash, bottom ash and pond ash available for distribution after meeting existing contractual commitments. Ash supply is to be undertaken through transparent mechanisms and used for environmentally compliant purposes as specified in the MoEF&CC notification dated December 31, 2021, along with amendments issued on December 30, 2022, and January 1, 2024.

The guidelines require TPPs to earmark a share of issuable fly ash for supply at concessional rates to MSEs and local users within a 100 km radius of the plant. The percentage allocation and concessional pricing will be decided by a plant-level committee chaired by the Head of the Plant, with representation from the local administration and associations of ash users.

Allocation will be conducted through an Expression of Interest (EoI) process. Eligible MSEs are required to hold a valid Consent to Operate from the Central Pollution Control Board (CPCB) or the State Pollution Control Boards (SPCBs), or possess a valid Udyam registration certificate.

For general sales, TPPs are to adopt an open auction mechanism with a minimum floor price of Rupee One per metric tonne. Any ash remaining unutilised after auction may be supplied free of cost on a first-come, first-served basis, with transportation expenses borne by the user.

In cases where ash is transported beyond 300 km, the financial responsibility of TPPs towards transportation costs will be capped at the notional equivalent of road transport for up to 300 km, irrespective of the actual transport mode. Plants are permitted to use lower-emission transport options such as waterways, rail, rail-cum-road, Roll-on/Roll-off or pipeline systems.

TPPs are also required to empanel transportation agencies through competitive bidding, using State or Central Schedule of Rates. The guidelines specify that there should be no gap between the expiry of an existing transport panel and the appointment of a new one.

The revised norms apply prospectively to all coal and lignite-based TPPs, including captive and co-generating stations. Existing ash supply contracts will remain valid until their expiry. Subsequent allocations and fresh commitments are required to follow the transparent processes set out in the new guidelines.

The Central Electricity Authority (CEA) will oversee implementation. The guidelines have been circulated to Secretaries of concerned ministries, including Environment, Coal, Road Transport, Micro, Small and Medium Enterprises (MSME), and Mines, as well as to regulatory commissions, pollution control boards and state chief secretaries.

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