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CAQM Imposes ₹61.85 Crore Penalty on 6 Thermal Power Plants Near Delhi for Biomass Rule Violations

CAQM has imposed ₹61.85 crore environmental compensation on six thermal power plants within 300 km of Delhi for failing to follow biomass co-firing rules aimed at reducing air pollution.
CAQM Penalty
Indian Masterminds Stories

New Delhi: The CAQM environmental compensation on thermal power plants has become a major step in India’s fight against air pollution. The Commission for Air Quality Management (CAQM) has imposed a penalty of around ₹61.85 crore on six thermal power plants located within 300 km of Delhi. 

This action was taken due to their failure to follow mandatory biomass co-firing rules aimed at reducing pollution in the Delhi-NCR region. The move highlights stricter enforcement of environmental norms to tackle stubble burning and improve air quality.

Why CAQM Imposed the ₹61.85 Crore Penalty

The penalty was imposed after a detailed review of compliance for the financial year 2024–25. Authorities found that six thermal power plants did not follow the required environmental rules.

Read also: 80% of Delhi-NCR Residents Considering Leaving the City Amid Severe Air Pollution Crisis

These plants failed to use the required biomass pellets or briquettes along with coal, which is mandatory under environmental regulations.

What Are the Biomass Co-Firing Rules?

Under the Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023:

  • Power plants must use at least 5% biomass blend with coal
  • A minimum 3% co-firing was required in FY 2024–25
  • These rules aim to reduce:
    • Stubble burning
    • Air pollution in Delhi-NCR
    • Dependence on coal

Failure to meet these targets leads to environmental compensation (penalty).

CAQM Penalty: List of Penalised Thermal Power Plants

The six power plants fined include:

  • Talwandi Sabo Power Ltd (Punjab) – ₹33.02 crore
  • Panipat Thermal Power Station (Haryana) – ₹8.98 crore
  • Deenbandhu Chhotu Ram TPP (Haryana) – ₹6.69 crore
  • Rajiv Gandhi TPP (Haryana) – ₹5.55 crore
  • Guru Hargobind TPP (Punjab) – ₹4.87 crore
  • Harduaganj Thermal Power Station (Uttar Pradesh) – ₹2.74 crore

The highest penalty was imposed on Talwandi Sabo Power Ltd.

CAQM Penalty: Final Deadline Given 

CAQM has directed all six plants to:

  • Deposit the penalty by 15 April 2026
  • Submit proof of payment to the commission

Strict action may follow if the order is not complied with.

Read also: Supreme Court Pushes Big Reform: Government Asked to Shift Coal-Based Industries from Delhi-NCR


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