India's 7% Biomass Co-Firing Mandate: Genuine Struggle or Slow Walk?

India's biomass co-firing policy has been through several revisions since it was first introduced, each one meant to push thermal power plants further away from 100% coal. The current requirement asks utility-owned coal plants to co-fire at least 5% biomass from FY 2024-25, stepping up to 7% from FY 2025-26. The question worth asking now is whether plants are genuinely finding this hard, or simply not prioritising it.

What the Enforcement Data Shows

The clearest recent signal came from the Commission for Air Quality Management (CAQM), which in early 2026 imposed environmental compensation of roughly ₹61.85 crore on six thermal power plants within 300 km of Delhi for failing to meet even the interim 3% co-firing threshold set for FY 2024-25. Talwandi Sabo Power (Vedanta) in Punjab accounted for the largest share at ₹33.02 crore, followed by Haryana's Panipat, Deenbandhu Chhotu Ram, and Rajiv Gandhi thermal stations, Punjab's Guru Hargobind plant, and Uttar Pradesh's Harduaganj station.

What stands out is CAQM's own reasoning for the penalty: it found that "the reasons provided did not establish that the entities tried earnestly to comply" with the statutory directions, after reviewing the plants' representations. That's a notably direct assessment from a regulator — not a finding of impossible supply conditions, but of insufficient effort.

The Case for Genuine Difficulty

That said, the supply-side constraints are real and well documented. A 2023 study by the Centre for Science and Environment found that, years after the mandate was first introduced, cumulative coal replacement across DelhiNCR plants had not even crossed 1%. Pellet manufacturing capacity at the time covered only about half of actual demand, and 73% of tenders floated for 12 million tonnes of biomass pellets remained unawarded. Vendors involved in that process alleged some tenders "were not being awarded on purpose" — evidence pointing both ways: real capacity shortages, and process delays that plants controlled themselves.

The government has also adjusted the mandate's pace over time, at one point extending compliance deadlines and capping co-firing levels — decisions read by some analysts as easing pressure on plants rather than tightening it.

Where It's Working

Not every plant is lagging. NTPC's Tanda station in Uttar Pradesh reached 20% co-firing using torrefied biomass pellets, a level industry commentary described as a first for India's power sector and well above the current mandate. It shows the 7% target is technically achievable with the right procurement and fuel-handling setup — which makes the gap between leaders like Tanda and penalised plants harder to explain purely on supply grounds.

Reading the Two Trends Together

Put side by side, the record suggests both explanations are partly true. Aggregated, reliable biomass supply is still genuinely constrained in several regions. But CAQM's own penalty order suggests that where supply exists, some plants haven't moved with urgency to secure it — through long-term contracts, vendor diversification, or timely tendering. The 7% target due this year will be a real test of which plants treat biomass sourcing as a compliance checkbox versus an operational priority.

Frequently Asked Questions

Q: What is India's current biomass co-firing mandate for coal power plants?

A: Utility-owned coal thermal power plants are required to co-fire at least 5% biomass from FY 2024-25, rising to 7% from FY 2025-26.

Q: Have any power plants been penalised for missing co-firing targets?

A: Yes. In early 2026, CAQM imposed about ₹61.85 crore in environmental compensation on six thermal plants near Delhi for missing the FY 2024-25 co-firing threshold.

How Kamlesh BioVerse Can Help?

Meeting co-firing targets consistently starts with securing fuel supply well ahead of compliance deadlines, not scrambling for it at year-end. Kamlesh BioVerse supports industrial and power-sector buyers with dependable briquette and pellet sourcing to help stay ahead of mandate timelines. Based in Udaipur, Kamlesh BioVerse (KBV) supplies briquettes, pellets, charcoal cubes, and biochar to industries across Rajasthan and beyond.

To discuss your requirements, reach us at +91 8824446431 or admin@kamleshbioverse.com.