Nagpur: In a major environmental ruling, the National Green Tribunal (NGT) Western Zone Bench in Pune has imposed an environmental compensation of ₹5 crore on Maharashtra State Power Generation Company Ltd. (Mahagenco) for serious violations at the Koradi Thermal Power Station located near Nagpur. The Tribunal has also directed the Maharashtra Pollution Control Board (MPCB) to assess and recover additional compensation, which is expected to run into several crores, for prolonged non-compliance.
The penalty relates to three coal-based thermal power units of 660 MW each — Units 8, 9, and 10 — commissioned between 2010 and 2017. Although the Ministry of Environment, Forest and Climate Change (MoEF&CC) granted Environmental Clearance (EC) in January 2010, Mahagenco allegedly failed to comply with several critical EC conditions despite years of operation and the plant’s close proximity to Nagpur city.
Petition by Nagpur-Based Environmental Groups
The case was initiated through Application No. 62 of 2021 (WZ) filed before the NGT by city-based environmental organisations — Krishi Vigyan Arogya Sanstha, Kisan Manch, and Pradyumna Sahasrabhojanee. The applicants sought strict enforcement of environmental norms, including:
- Development of a mandatory green belt
- Use of treated sewage water
- 100% fly ash utilisation
- Time-bound installation of Flue Gas Desulphurisation (FGD) systems
Key Violations Highlighted
The applicants flagged multiple environmental breaches at the Koradi plant, including:
- Failure to maintain prescribed ambient air quality standards
- Non-achievement of mandatory 100% fly ash utilisation
- Dumping of fly ash in ash bunds without required HDPE/LDPE lining
- Failure to develop the stipulated green belt
- Non-installation of FGD units even years after operations began
It was also brought to the Tribunal’s notice that the Expert Appraisal Committee (EAC), during its 32nd Thermal Power meeting in August 2019, had already recorded Mahagenco’s continued non-compliance. The EAC had noted emissions of sulphur dioxide (SO₂) and oxides of nitrogen (NOx) exceeding permissible limits. Despite this, Mahagenco allegedly sought repeated waivers instead of ensuring compliance, raising serious public health concerns for residents of Nagpur and nearby areas.
Tribunal’s Findings and Order
After examining inspection reports, affidavits, and submissions from all stakeholders, the NGT concluded that Mahagenco failed to achieve 100% fly ash utilisation within the stipulated timeframe and illegally dumped fly ash without mandatory lining at ash storage areas.
In its order dated January 5, 2026, the Tribunal directed Mahagenco to deposit ₹5 crore with the MPCB as environmental compensation. The Board has also been instructed to calculate additional compensation for the extended period of non-compliance, particularly regarding fly ash handling and absence of protective lining, in line with the “Polluter Pays” principle upheld by the Supreme Court in the Paryavaran Suraksha Samiti case.
Funds to Be Used for Environmental Restoration
The Tribunal specified that the recovered amount must be used exclusively for environmental remediation and improvement measures at and around the project site. MPCB has been directed to submit a compliance report to the Tribunal after the funds are utilised.
As per regulatory norms, environmental compensation is calculated using a formula that factors in the pollution index, number of violation days, scale of operations, environmental sensitivity of the location, and other risk parameters. Given the long duration of violations and the plant’s location near a densely populated urban centre, the final compensation figure is expected to be significantly higher.
The ruling is being seen as a landmark step in enforcing accountability for industrial pollution in the Vidarbha region, with potential implications for other thermal power plants operating near urban settlements.
