8 April 2026·PIB

CAQM imposes Environmental Compensation of around Rs. 61.85 crore on Six Thermal Power Plants within 300 km of Delhi for Non-compliance with Biomass Co-firing Norms

In this note

1. At a Glance

CAQM levied Environmental Compensation (EC) ~Rs. 61.85 crore on six coal-based Thermal Power Plants (TPPs) within 300 km of Delhi for failing to co-fire biomass pellets/briquettes with coal [1].
Action invoked under the Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023 (MoEFCC) [1].
Links three UPSC themes: air pollution governance (NCR), stubble/paddy-straw management, and statutory polluter-pays enforcement [1].

08 April 2026: CAQM, after issuing Show Cause Notices in late FY 2024-25, finalised EC of ~Rs. 61.85 crore on six TPPs for non-compliance with biomass co-firing norms for FY 2024-25 [1][2].

2017-21: MoP/NTPC's SAMARTH Mission (Sustainable Agrarian Mission on use of Agro Residue in TPPs) pushed voluntary biomass co-firing to curb paddy-straw burning [2].
Oct 2021: Revised biomass policy mandated 5%–7% co-firing in coal TPPs [2].
Aug 2021: CAQM Act, 2021 established the statutory Commission for Air Quality Management in NCR & Adjoining Areas [1].
2023: MoEFCC notified the Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023, making 5% biomass blending statutory [1].
FY 2024-25: Minimum threshold of 3% co-firing prescribed to escape EC; six plants fell short [1].

Issuing body: Commission for Air Quality Management in NCR & Adjoining Areas (CAQM) — statutory body under CAQM Act, 2021 [1].
Parent Ministry: Ministry of Environment, Forest and Climate Change (MoEFCC) [1].
Geographic scope of action: TPPs within 300 km radius of Delhi [1].
Governing Rules: Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023 [1].
Mandatory blend: 5% biomass pellets/briquettes (paddy-straw) with coal; FY 2024-25 floor = 3% [1].
Total EC: Rs. 61.85 crore on six TPPs [1].
Plant-wise EC [2]:
Talwandi Sabo Power Ltd (Vedanta), Mansa, Punjab — ~Rs. 33.02 cr
Panipat TPS, Haryana — ~Rs. 8.98 cr
Deenbandhu Chhotu Ram TPS, Yamunanagar, Haryana — ~Rs. 6.69 cr
Rajiv Gandhi TPP, Hisar, Haryana — ~Rs. 5.55 cr
PSPCL Guru Hargobind TPP, Lehra Mohabbat, Punjab — ~Rs. 4.87 cr
Harduaganj TPS (UPRVUNL), Uttar Pradesh

Legal / Constitutional
EC is levied as a polluter-pays instrument under the 2023 Rules notified via the Environment (Protection) Act, 1986; CAQM Act, 2021 §14 grants directive power [1].
Reinforces SC jurisprudence (M.C. Mehta line) where compensation flows for environmental harm.
Environmental
Co-firing 5% paddy-straw pellets directly substitutes a share of coal, reducing CO₂, SOₓ, PM emissions and curbing open-field stubble burning, a major NCR winter smog driver [1].
Economic
Creates assured demand pull for the pellet manufacturing industry, monetising what was an agri-waste externality; raises generation cost marginally, partly offset by avoided coal procurement [2].
Administrative / Federal
Defaulting plants span Punjab, Haryana, UP — the same states that are paddy-straw source basins, exposing supply-chain gaps (pellet shortage, logistics, tendering delays) [2].
Ethical / Governance
First large-scale statutory monetary penalty by CAQM on TPPs, signalling shift from advisories to enforceable accountability [1].

FY 2024-25: 3% co-firing threshold operationalised [1].
2025: CAQM issued Show Cause Notices to the same six TPPs (PRID 2207853) [2].
Apr 2026: EC of Rs. 61.85 cr finalised [1].
2026: CAQM's 28th Full Commission Meeting reviewed Delhi-NCR air pollution agenda [2].

CAQM is a statutory body (not executive) created by the CAQM Act, 2021 [1].
CAQM jurisdiction: NCR and Adjoining Areas (Punjab, Haryana, UP, Rajasthan portions) [1].
EC totalled Rs. 61.85 crore on six TPPs within 300 km of Delhi [1].
Largest individual EC: Talwandi Sabo Power Ltd (Vedanta), Mansa, Punjab — Rs. 33.02 cr [2].
Governing rules: Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023 [1].
Statutory blending mandate: 5% biomass pellets/briquettes with coal [1].
Minimum co-firing floor for FY 2024-25 = 3% [1].
Pellet feedstock: paddy straw (ex-situ crop residue management) [1].
Parent ministry of CAQM: MoEFCC (not Ministry of Power) [1].
Voluntary precursor programme: SAMARTH by Ministry of Power/NTPC [2].
Plants penalised lie in Punjab, Haryana, and Uttar Pradesh [2].
CAQM replaced the earlier EPCA (Environment Pollution Prevention & Control Authority) [1].

GS-III: Environment — Conservation, Environmental Pollution & Degradation; also Agriculture (crop-residue management) & Energy.
GS-II: Statutory bodies, Centre-State coordination in NCR governance.
Probable stems: 1. "Examine the effectiveness of statutory enforcement by CAQM in tackling air pollution in NCR." (GS-III) 2. "Biomass co-firing in thermal power plants is a triple-win — for farmers, environment, and energy security. Discuss." (GS-III) 3. "Compare CAQM with the erstwhile EPCA in their mandate and enforcement powers." (GS-II)

CAQM Act, 2021 — statutory architecture, penalties up to 5 years/Rs.1 cr.
Stubble burning & ex-situ vs in-situ management (Pusa Decomposer, Happy Seeder) — supply side of pellets.
SAMARTH Mission (Ministry of Power) — voluntary precursor to mandatory rules.
GRAP (Graded Response Action Plan) — CAQM's other key tool.
NCAP (National Clean Air Programme), 2019 — wider 131-city pollution framework.
Environment (Protection) Act, 1986 — parent statute for sub-rules.
National Bio-Energy Programme (MNRE) — biomass pellet manufacturing subsidy.
Polluter Pays Principle & M.C. Mehta jurisprudence — constitutional grounding.

CAQM ≠ CPCB ≠ EPCA: CAQM superseded EPCA in 2021; CPCB is a separate pollution-monitoring body under MoEFCC.
The 5% co-firing rule is statutory under MoEFCC's 2023 Rules — not a Ministry of Power scheme (SAMARTH is the Power Ministry's voluntary mission).
Threshold confusion: 5% mandated, but FY 2024-25 EC floor is 3% — easy MCQ trap.
CAQM's reach is NCR + adjoining areas of Punjab, Haryana, Rajasthan, UP, not pan-India.
Feedstock is paddy straw / crop residue, not municipal solid waste or wood pellets.