Rs 62 Crore Fine on 6 Power Plants for Flouting Biomass Co-Firing Rules

The Commission for Air Quality Management has imposed a total environmental compensation of approximately Rs 61.85 crore on six thermal power plants in the Delhi-NCR region. These plants failed to comply with rules mandating the use of a blend of biomass pellets with coal to help manage crop residue and reduce air pollution. A special committee reviewed the plants' submissions and found their reasons for non-compliance unsatisfactory, leading to the hefty fines. The plants have been directed to deposit the penalties by April 15, 2024.

Key Points: Rs 62 Crore Fine on Delhi-NCR Power Plants for Pollution Violations

  • Rs 61.85 crore total fine
  • Six non-compliant power plants penalized
  • Violation of 5% biomass co-firing rule
  • Deadline for payment is April 15
  • Aimed at reducing crop burning pollution
3 min read

CAQM imposes Rs 61.85 Crore Environmental Compensation on 6 Thermal Power Plants in Delhi-NCR

CAQM imposes Rs 61.85 crore environmental compensation on six thermal power plants for failing to use mandated biomass blend with coal to curb air pollution.

"The reasons provided did not establish that the entities tried earnestly to comply - CAQM Committee Report"

New Delhi, April 8

The Commission for Air Quality Management in Delhi-NCR and Adjoining Areas has imposed Environmental Compensation totalling approximately Rs 61.85 crore on six coal-based Thermal Power Plants within a 300 km radius of Delhi for non-compliance with statutory provisions mandating the use of biomass along with coal.

The action follows violations of the Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023, which require all coal-based TPPs to use a 5 per cent blend of biomass pellets or briquettes along with coal, with a minimum threshold of 3 per cent co-firing prescribed for FY 2024-25. These rules were notified to promote ex-situ management of crop residue, curb paddy straw burning, and mitigate air pollution in NCR and adjoining areas, a release said.

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, 06 TPPs were found non-compliant. Accordingly, a Committee was constituted comprising of 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).

As per the release, the Committee was framed to review and consider representations submitted by TPPs w.r.t. relaxation on the Environmental Compensation imposed on them for non-utilization of crop residue on case to case basis. The Committee examined performance data, compliance status, written submissions and grounds cited by the TPPs, and also provided opportunity of personal hearing to the concerned entities.

The replies of the 06 non-compliant TPPs were reviewed in detail by the Committee and it was observed that the reasons provided did not establish that the entities tried earnestly to comply with the Statutory Directions.

The Committee, accordingly, submitted a report to CAQM recommending the imposition of Environmental Compensation on six non-compliant Thermal Power Plants: Talwandi Sabo Power Limited (TSPL - Vedanta) in Mansa, Punjab, for approximately Rs 33.02 crore; Panipat Thermal Power Station (PTPS) under Haryana Power Generation Corporation Limited (HPGCL) for approximately Rs 8.98 crore; Deenbandhu Chhotu Ram Thermal Power Plant (DCRTPP), HPGCL, for approximately Rs 6.69 crore; Rajiv Gandhi Thermal Power Plant (RGTPP), HPGCL, for approximately Rs 5.55 crore; Guru Hargobind Thermal Power Plant (GHTPP), Punjab State Power Corporation Limited (PSPCL), for approximately Rs 4.87 crore; and Harduaganj Thermal Power Station (HTPS), Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL), for approximately Rs 2.74 crore.

The total Environmental Compensation imposed across these 06 non-compliant TPPs amounts to approximately Rs 61.85 Crore, a release added.

The Commission has directed the concerned TPPs to deposit the imposed Environmental Compensation by April 15 and submit proof of such deposit to the Commission.

The Commission reiterates 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 shall continue to pursue strict enforcement of Statutory Directions and monitor compliance closely to ensure that all regulated entities adhere to the prescribed norms.

- ANI

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Reader Comments

P
Priya S
Good step by CAQM. But will the money actually be used for environmental remediation? Or will it just go into some government fund? Transparency in how this compensation is utilized is very important. We need to see results, not just penalties.
R
Rohit P
The biggest fine is on a plant in Punjab (TSPL - ₹33 cr). This is directly linked to stubble burning issue. If power plants use that residue, it's a win-win. Farmers get income, pollution reduces. Why aren't these companies cooperating? 🤔
S
Sarah B
While the intent is good, I hope the compliance process is fair. The article says they were given a hearing. Sometimes the supply chain for biomass pellets isn't robust. The government should also ensure the infrastructure is in place for plants to follow the rules.
V
Vikram M
Haryana and Punjab state power gens are on the list. Shows the problem is widespread. This is not just a Delhi problem, it's a regional crisis. Need strict monitoring across states. Jai Hind!
K
Kavya N
₹61.85 crore is a huge amount, but for these large corporations, is it just a cost of doing business? The deadline to pay is April 15. Let's see if they pay up or try to get stay orders from courts. Enforcement is the key.
M
Michael C

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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