The Commission for Air Quality Management (CAQM), which monitors air pollution in the National Capital Region (NCR) and adjoining areas, has imposed an environmental compensation of around Rs 61.85 crore on six thermal power plants located within a radius of 300km of Delhi. The power plants are liable to pay this compensation for “non-compliance with statutory provisions mandating the use of 5 per cent blend of biomass pellets or briquettes made of paddy straw along with coal”, says a statement from the ministry of forest, environment and climate change.
Biomass pellets help lower air pollution
According to the Environmental (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023, all coal-based thermal power plants must utilise a 5 per cent blend of biomass pellets or briquettes along with coal, with a minimum threshold of 3 per cero co-firing prescribed for the financial year 2024-25, to avoid imposition of the compensation. These provisions were put in place to promote ex-situ management of crop residue, reduce instances of paddy straw burning and mitigate air pollution in NCR and adjoining areas, which include parts of Haryana, Punjab, Rajasthan and Uttar Pradesh
The CAQM has been monitoring compliance through periodic reviews, facilitated stakeholder consultations and joint inspection visits, says the ministry.
During the review of compliance for 2024-25, six thermal power plants were found to be non-compliant. A committee, comprising representatives from the CAQM, Central Electricity Authority (CEA), Sustainable Agrarian Mission on use of Agri-Residue in Thermal Power Plants (SAMARTH) and Central Pollution Control Board (CPCB, examined the replies of the thermal power plants in detail.
Plants showed no earnest effort
The committee, however, observed that the reasons provided did not establish that the power plants tried earnestly to comply with the rules. The panel, therefore, recommended imposition of the environmental compensation.
The following are the six non-compliant power plants: Talwandi Sabo Power Limited (TSPL – Vedanta), Mansa, Punjab (compensation amount Rs 33.02 crore), Panipat Thermal Power Station (PTPS), Haryana Power Generation Corporation Limited (HPGCL) (compensation amount Rs 8.98 crore), Deenbandhu Chhotu Ram Thermal Power Plant (DCRTPP), HPGCL (compensation amount Rs 6.69 crore), Rajiv Gandhi Thermal Power Plant(RGTPP), HPGCL (compensation amoun Rs 5.55 crore), Guru Hargobind Thermal Power Plant(GHTPP), Punjab State Power Corporation Limited (PSPCL) (compensation amount Rs 4.87 crore) and Harduaganj Thermal Power Station(HTPS), Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) (compensation amount Rs 2.74 crore).
The CAQM has directed the power plants to deposit the compensations latest by April 15, 2025.
With this step, the CAQM has underlined that biomass co-firing in thermal power plants is a crucial measure that also helps to manage air pollution, the ministry statement says. “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,” it adds.

