NGT grants conditional stay on ₹33.02 penalty imposed on thermal power plant

The NGT granted a conditional stay on a ₹33.02 crore penalty for Talwandi Sabo Thermal Power Plant for failing to co-fire crop residue, pending a hearing.

Days after the Commission for Air Quality Management (CAQM) cracked down on thermal power plants for failing to co-fire crop residue, the National Green Tribunal (NGT) has granted a conditional stay on the ₹33.02 crore compensation imposed on the Talwandi Sabo Thermal Power Plant in Punjab.

On April 8, the CAQM imposed nearly ₹61 crore in environmental compensation on six coal-based plants within a 300 km radius of Delhi for failing to meet biomass co-firing norms. (Representative photo)

Appearing for the appellant, counsel argued that compliance was hit by a shortage of torrefied biomass pellets — a constraint acknowledged by the Central Electricity Authority — and that the penalty failed to account for these supply-side limitations. The CAQM, however, maintained that adequate biomass was available and that the plant had significantly underutilised it, adding that due process, including issuance of a show-cause notice, had been followed.

While considering the stay plea on April 13, the tribunal noted the twin imperatives of enforcing anti-pollution norms while recognising practical hurdles in implementation. It ordered that the CAQM’s direction would remain stayed, subject to the company depositing 50% of the penalty within six weeks.

“Having regard to the arguments advanced by learned counsel for the parties and also considering the effect of non-compliance with the Rules of 2023 and non-use of torrefied pellets by the appellant on pollution in the NCR, we are of the view that grant of conditional stay in the matter will serve the interest of justice. Accordingly, we direct that the impugned order dated April 1 will remain stayed until further orders, subject to deposit of 50% of the environmental compensation imposed by the impugned order by the appellant within a period of six weeks from today,” the bench said on April 13.

The matter is now listed for further hearing on July 27.

On April 8, the CAQM imposed nearly ₹61 crore in environmental compensation on six coal-based plants within a 300 km radius of Delhi for failing to meet biomass co-firing norms. The action followed rules mandating a 5% blend of crop residue-based biomass pellets with coal, with a minimum 3% threshold prescribed for 2024–25 to avoid penalties. Among the defaulters, Talwandi Sabo Thermal Power Plant faced the highest levy — ₹33.02 crore — while penalties for others ranged between ₹2 crore and ₹8 crore.

The Environment (Utilization of Crop Residue by Thermal Power Plants) Rules, 2023 mandate that thermal plants co-fire at least 5% biomass pellets or briquettes made from stubble.