PSPCL among six power plants in Punjab, Haryana, UP fined Rs 62 crore for failing to comply with commission orders
Kanwar Inder Singh/ royalpatiala.in News/ April 8,2026
Punjab’s two , Haryana’s three and UP’s one power plant have been fined by Commission for Air Quality Management (CAQM) for not using the prescribed pellets or briquettes made of paddy straw crop residue along with coal.
Punjab State Power Corporation Limited (PSPCL) runs Guru Hargobind Thermal Power Plant (GHTPP), Lehra Moghabbat along with Talwandi Sabo Power Limited (TSPL – Vedanta), Mansa has been fined for Rs 4.87 crore and Rs 33.02 crores respectively for not using 5% blend of biomass pellets or briquettes along with coal while generating the power.
Punjab and Haryana, the food bowls of India, produce abundant paddy straw residue. Failure to utilize it despite the commission’s orders raises serious concerns. This not only reflects poor compliance but also highlights a missed opportunity for sustainable waste management. Effective use of this residue could significantly reduce stubble burning and its harmful environmental impact.
CAQM Observation, Orders
The Commission for Air Quality Management in NCR and Adjoining Areas (CAQM) has imposed Environmental Compensation (EC) under Rule 3 of the Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023 read with Section 12 of the CAQM Act, 2021, against 06 coal-based Thermal Power Plants (TPPs) located within a radius of 300 km of Delhi for non-compliance/ contravention of statutory provisions which mandated use of five percent blend of pellets or briquettes made of paddy straw crop residue along with coal.
The Environment (Utilisation of Crop Residue by Thermal Power Plants) Rules, 2023 mandate all coal-based TPPs to utilise 5% blend of biomass pellets or briquettes along with coal, with a minimum threshold of 3% co-firing prescribed for FY 2024–25 to avoid imposition of Environmental Compensation. These statutory provisions were notified with the objective of promoting ex-situ management of crop residue, reducing instances of paddy straw burning, and mitigating air pollution in NCR and adjoining areas. The Commission has also issued Statutory Direction No. 42 dated 17.09.2021 and has continuously monitored compliance through periodic reviews, facilitated stakeholder consultations and joint inspection visits.
During review of compliance for the period 2024-25, 06 TPPs were found non-compliant.
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Accordingly, a Committee was constituted comprising of members from CAQM, Central Electricity Authority (CEA), Sustainable Agrarian Mission on use of Agri-Residue in Thermal Power Plants (SAMARTH) and Central Pollution Control Board (CPCB). The Committee was framed to review and consider representations submitted by TPPs w.r.t. relaxation on the Environmental Compensation imposed on them for non-utilization of crop residue on case to case basis. The Committee examined performance data, compliance status, written submissions and grounds cited by the TPPs, and also provided opportunity of personal hearing to the concerned entities.
The replies of the 06 non-compliant TPPs were reviewed in detail by the Committee and it was observed that the reasons provided did not establish that the entities tried earnestly to comply with the Statutory Directions.
The Committee, accordingly, submitted a report to CAQM recommending imposition of Environmental Compensation to the following non-compliant TPPs:
Talwandi Sabo Power Limited (TSPL – Vedanta), Mansa, Punjab – approx. Rs. 33.02 Crore
Panipat Thermal Power Station (PTPS), Haryana Power Generation Corporation Limited (HPGCL) – approx. Rs. 8.98 Crore
Deenbandhu Chhotu Ram Thermal Power Plant (DCRTPP), Haryana Power Generation Corporation Limited (HPGCL) – approx. Rs. 6.69 Crore
Rajiv Gandhi Thermal Power Plant (RGTPP), Haryana Power Generation Corporation Limited (HPGCL) – approx. Rs. 5.55 Crore
Guru Hargobind Thermal Power Plant (GHTPP), Punjab State Power Corporation Limited (PSPCL) – approx. Rs. 4.87 Crore
Harduaganj Thermal Power Station (HTPS), Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) – approx. Rs. 2.74 Crore
The total Environmental Compensation imposed across these 06 non-compliant TPPs amounts to approximately Rs. 61.85 Crore.
The Commission has directed the concerned TPPs to deposit the imposed Environmental Compensation latest by 15.04.2026 and submit proof of such deposit to the Commission.
The Commission reiterates that biomass co-firing in Thermal Power Plants is a crucial measure for effective ex-situ management of crop residue, reducing instances of paddy straw burning, and mitigating air pollution in NCR and adjoining areas.
Official Versions
When contacted, PSPCL Director Inderpal Singh said, “We had already informed the commission about the non-availability of biomass pellets or briquettes to be used along with coal during that period.” He further added, “We will approach the appellate tribunal and present our case.” He emphasized that the shortage was beyond their control and assured that all necessary steps would be taken to comply with the norms once supply stabilizes”.
TSPL spokesperson added that “ our’s is a supercritical plant cannot process conventional biomass and requires high-density, carbon-neutral biofuels, not easily available in the market We had already intimated the commission about this issue. To overcome this challenge and enable large-scale adoption of torrefied biomass pellets, we sets up Punjab’s largest torrefied bio-pellet manufacturing facility with a capacity of 500 tons per day, near its plant. This has helped convert agricultural residue, primarily paddy straw residue, procured locally, and converted into a high-value fuel source. Now, our problem is solved and we are using the pellets or briquettes made of paddy straw crop residue along with coal as per the commission’s orders.”
