Government Tightens Regulations on Ash Utilization in Thermal Power Plants

The Ministry of Environment, Forest & Climate Change (MoEF&CC) issued guidelines to achieve 100% utilization of ash with least burden on electricity consumers. These guidelines were a response to recent amendments made in advisories pertaining to ash utilization by Thermal Power Plants (TPPs). These guidelines were issued on March 15, 2024.

It may be recalled that on December 31, 2021 MOEF&CC had issued a notification regarding the utilization of ash by coal or lignite-based TPPs. Subsequently, amendments were made to this notification in December 30, 2022, and January 1, 2024.

Amendment on February 22, 2022

In alignment with these environmental directives, the Ministry of Power (MoP) issued an advisory on February 22, 2022, to all Thermal Power Plants. The advisory emphasized transparency and the imperative of utilizing ash efficiently to minimize the burden on electricity consumers and ensure affordable power supply.

Amendment on January 1, 2024

Additionally, the recent amendment dated January 1, 2024, necessitates further streamlining of procedures for TPPs. This includes revising the advisory of February 22, 2022, to align with the objective of achieving 100% ash utilization while minimizing the impact on consumers.

Crucially, the amendment mandates that TPPs reserve a certain percentage of ash for supply to micro and small enterprises engaged in ash-based product manufacturing. These products include bricks, blocks, tiles, aggregates, cement sheets, pipes, and panels. They must be sold at concessional prices or through limited auctions as per guidelines issued by MoP.

Based on all these advisories, the Guidelines broadly cover the procedure for disposal of ash by TPPs as under:

  • General Procedure for Disposal of Ash
  • Procedure for Limited Auction for Sale of Dry Fly Ash to MSEs Manufacturing Ash-based Products
  • Procedure for Open Auction for Sale of Ash Among All Users
  • Procedure for TPPs to bear Transportation Costs

In light of these developments, all coal and lignite-based TPPs, whether Central, State, or Private, are directed to adhere to the guidelines and its subsequent amendments. These guidelines supersede any previous directives and apply prospectively.

Enforcement, monitoring, audit, and reporting of compliance with these guidelines will follow the provisions outlined in the MoEF&CC notifications. All relevant stakeholders are urged to take necessary actions to ensure adherence to these regulations, thereby fostering sustainable practices in the energy sector.

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