₹61.85 Crore Fine on 6 Thermal Plants for Ignoring Crop Residue Rules

Moneylife Digital Team 08 April 2026

Investor Interest

The commission for air quality management (CAQM) has imposed environmental compensation of around ₹61.85 crore on six thermal power plants located within 300km of Delhi for failing to comply with mandatory biomass co-firing norms aimed at curbing air pollution.

In a statement, the Union ministry of environment, forest and climate change says, the action follows non-compliance with statutory provisions requiring coal-based thermal power plants to use at least 5% biomass pellets or briquettes made from paddy straw along with coal. A minimum threshold of 3% co-firing had been prescribed for FY24-25 to avoid penalties.

The penalties are imposed after a detailed review of compliance for FY24-25, during which six plants were found to have failed in meeting the mandated norms.

The highest penalty of about ₹33.02 crore was imposed on Talwandi Sabo Power Ltd in Punjab. Other penalised plants include: Panipat Thermal Power Station (around ₹8.98 crore), Deenbandhu Chhotu Ram Thermal Power Plant (around ₹6.69 crore), Rajiv Gandhi Thermal Power Plant (around ₹5.55 crore), Guru Hargobind Thermal Power Plant (around ₹4.87 crore), and Harduaganj Thermal Power Station (around ₹2.74 crore).

A multi-agency committee comprising representatives from the Central Electricity Authority (CEA), Central Pollution Control Board (CPCB) and other stakeholders examined the responses submitted by the plants and conducted hearings.

The committee found that the reasons cited by the power plants did not demonstrate genuine efforts to comply with the statutory requirements.

The biomass co-firing mandate is part of the Environmental (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023, which aim to promote the use of agricultural residue such as paddy straw in power generation.

The measure is intended to support ex-situ management of crop residue, reduce stubble burning in northern states, and mitigate severe air pollution in Delhi-NCR and adjoining regions.

The CAQM has directed all six plants to deposit the imposed environmental compensation by 15 April 2026, and submit proof of payment.

Reiterating its stance, the Commission says biomass co-firing remains a critical intervention to tackle seasonal air pollution and that strict enforcement of norms will continue.

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