The Punjab State Power Corporation Limited (PSPCL) has deposited half of the ₹4.86-crore environmental penalty imposed by the Commission for Air Quality Management (CAQM) for alleged non-compliance with biomass co-firing norms at the Guru Hargobind Thermal Power Plant, Lehra Mohabbat, and has approached the National Green Tribunal seeking relief from payment of the remaining amount.
Event Context
The CAQM had imposed the environmental compensation on April 1, 2026, after the Bathinda thermal plant allegedly failed to meet mandatory biomass co-firing targets.
Under the biomass co-firing norms, thermal power plants must use a specified percentage of biomass pellets—made from agricultural residues, wood waste or crop stubble—along with coal to help curb air pollution.
In an additional affidavit filed before the NGT, PSPCL said it deposited ₹2.43 crore as a bona fide measure (in good faith) and without prejudice to its legal rights (no admission of guilt). The corporation submitted that the payment was in line with interim relief granted by the tribunal in similar matters involving other thermal power plants, where depositing 50% of the penalty amount was a condition for a stay on recovery.
PSPCL has challenged the CAQM’s order before the NGT, contending that it has a strong prima facie case and that the penalty deserved to be set aside on the grounds raised in its appeal. The corporation also placed on record proof of the ₹2.43-crore payment along with letters sent to the CAQM on July 1 and July 13 informing the regulator about the deposit.
The matter is scheduled to come up for hearing before the NGT on July 27.
