CAQM issues show-cause notices to six thermal power plants over clean fuel violations

The Commission for Air Quality Management (CAQM) has issued show-cause notices to six coal-based thermal power plants for failing to comply with mandatory biomass co-firing norms. These norms require thermal plants to blend a fixed share of biomass - such as crop-residue pellets and briquettes - with coal in order to reduce emissions and promote cleaner fuel use. A compliance review for the financial year 2024–25 found that the plants did not meet even the minimum required biomass usage levels.

Following the findings, CAQM has asked the power producers to submit their explanations within 15 days and has proposed an environmental compensation amounting to around ₹61.85 crore in total. The regulator warned that failure to provide a satisfactory response could invite further regulatory or legal action under the CAQM Act, 2021. This move signals a tougher enforcement stance to ensure industries adhere to pollution control and clean energy transition policies.

The plants served notices include Talwandi Sabo Power Plant in Punjab, Panipat Thermal Power Station, Deenbandhu Chhotu Ram Thermal Power Plant, Rajiv Gandhi Thermal Power Plant, Guru Hargobind Thermal Power Plant, and Harduaganj Thermal Power Plant in Uttar Pradesh. The penalty amounts vary depending on the level of non-compliance recorded at each facility.

The biomass co-firing policy aims to create an alternative market for agricultural residue that would otherwise be burnt in open fields, contributing to severe seasonal air pollution. By diverting this waste into the energy system, the government seeks to reduce emissions, support cleaner power generation, and improve overall environmental performance. CAQM’s action highlights its intent to push industries toward cleaner practices through regulatory accountability.

Show-cause notices to thermal plants illustrate that Indian air-quality enforcement is tightening, and it changes stranded-asset calculations for lenders and offtakers with thermal-plant exposure. Our sustainability-due-diligence and climate-action teams help clients evaluate what enforcement action means for portfolio positioning and TCFD-aligned disclosure.