CAQM Imposes Fine of Rs 61.85 Cr on Six Thermal Power Plants

The Commission for Air Quality Management (CAQM) has imposed Environmental Compensation (EC) amounting to around ₹61.85 crore on six thermal power plants located within a 300 km radius of Delhi. The penalty has been levied for non-compliance with mandated biomass co-firing norms as per Press Release dated 8th April, 2026. 

CAQM Penalty 

As per Environmental (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023, coal-based thermal power plants are required to use a 5% blend of biomass pellets or briquettes made from paddy straw along with coal. For the financial year 2024–25, a minimum threshold of 3% co-firing was prescribed to avoid penalties. 

The Environmental Rules of 2026 aim to promote ex-situ crop residue management, reduce paddy stubble burning, and address air pollution in the NCR and surrounding regions. 

Review and Committee Findings 

A committee comprising representatives from the Central Electricity Authority, Central Pollution Control Board, CAQM, and the Sustainable Agrarian Mission on use of Agri-Residue in Thermal Power Plants (SAMARTH) reviewed compliance for 2024–25. 

Six thermal power plants were found non-compliant with the prescribed limit. The committee evaluated their submissions, performance data, and provided an opportunity for personal hearings. It concluded that the reasons cited did not demonstrate sufficient effort to meet statutory requirements. 

List of Penalised Thermal Power Plants 

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

Compliance Deadline 

The plants have been directed to deposit the imposed Environmental Compensation by 15th April, 2026 and submit proof of payment to the Commission.