SF Prep Notes

CAQM imposes ₹61.85 crore compensation on six thermal plants for missing biomass co-firing norms

The Commission for Air Quality Management imposed Environmental Compensation of about ₹61.85 crore on six thermal power plants within 300 km of Delhi on 8 April 2026 for failing to co-fire paddy-straw biomass with coal in 2024-25.

Summary

The Commission for Air Quality Management in NCR and Adjoining Areas (CAQM) said on 8 April 2026 that it had imposed Environmental Compensation of about ₹61.85 crore on six thermal power plants within 300 km of Delhi for not complying with biomass co-firing norms in 2024-25. The Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023 require coal-based plants to use a 5% blend of biomass pellets or briquettes with coal, with a minimum of 3% prescribed for FY 2024-25, to promote ex-situ management of paddy straw and reduce stubble burning. The largest penalty, about ₹33.02 crore, is on Talwandi Sabo Power Limited in Mansa, Punjab; the others are three HPGCL plants in Haryana, PSPCL's Guru Hargobind plant in Punjab and Harduaganj in Uttar Pradesh. The plants must pay by 15 April 2026.

Key facts

Penalty
~₹61.85 crore on six TPPs within 300 km of Delhi
Rule
5% biomass blend; minimum 3% for FY 2024-25
Law
Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023
Largest
Talwandi Sabo Power Ltd, Mansa, Punjab: ~₹33.02 crore
Deadline
Deposit by 15 April 2026

Practice MCQs 3 questions

Q1

Under the Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023, coal-based thermal plants must use what blend of biomass pellets or briquettes with coal?

Show answer

Correct answer: B — 5%

The Rules mandate a 5% blend of biomass pellets or briquettes with coal, with a minimum threshold of 3% prescribed for FY 2024-25.

Q2 Advanced

Which thermal power plant faced the largest Environmental Compensation (about ₹33.02 crore) in CAQM's April 2026 action on biomass co-firing?

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Correct answer: C — Talwandi Sabo Power Limited, Mansa

CAQM listed about ₹33.02 crore on Talwandi Sabo Power Limited (Mansa, Punjab), the highest of the six; Harduaganj had the lowest at about ₹2.74 crore.

Q3 Advanced

Consider the following statements about CAQM's action of April 2026: 1. It covers thermal power plants located within 500 km of Delhi. 2. The minimum co-firing threshold prescribed for FY 2024-25 was 5%. Which of the statements given above is/are correct?

Show answer

Correct answer: D — Neither 1 nor 2

Both are wrong: the six plants are within 300 km of Delhi, and the minimum threshold for FY 2024-25 was 3% (5% is the mandated blend).

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