The Ash Utilisation Notification, 2021 was originally notified on December 31, 2021 under the Environment (Protection) Act, 1986 to mandate utilisation of fly ash and bottom ash generated by coal and lignite based thermal power plants. The notification has been amended earlier on December 30, 2022 and January 1, 2024. Based on representations received from various stakeholders regarding implementation issues, the Central Government has now issued draft amendments proposing modifications to roles of authorities, compliance cycles, utilisation targets, reporting mechanisms, environmental compensation, and audit requirements.

The Central Government proposes to amend the Ash Utilisation Notification, 2021 as follows:

1. Paragraph A (Ash Utilisation by Thermal Power Plants)

• In sub-paragraph (3), references to “Central Pollution Control Board (CPCB)” shall be substituted with “Central Electricity Authority (CEA)”, and CPCB shall be additionally inserted after the Ministry of Road Transport and Highways.
• In sub-paragraph (4), provisions relating to carry-forward of unutilised ash are modified to explicitly allow exemption during the compliance cycle, and the compliance cycle is substituted with “five years” for specified categories.
• In sub-paragraph (5), utilisation shall be calculated based on ash generated during the corresponding year, and certification timelines are revised to 31 March, 2025. Provisions relating to mandatory stabilisation and reclamation of ash ponds within three years from April 1, 2022 are deleted.
• In sub-paragraph (6), operational guidelines are aligned with those issued in June 2023, prepared by CEA in consultation with CPCB, and timelines for implementation are removed.
• References to CPCB web portal are replaced with Coal Ash Management Portal (CAMP).

2. Paragraph B (Ash Utilisation in Mines)

• All mines located within 300 km radius of coal or lignite based thermal power plants are mandatorily required to undertake backfilling or stowing under Extended Producer Responsibility (EPR) as per DGMS guidelines.
• Provisions relating to mixing of ash with overburden dumps and utilisation of 25% ash for overburden are deleted.
• Committee composition and inter-ministerial coordination are expanded, and the committee is mandated to meet at least once every six months.
• A new provision is inserted enabling the committee to review ash availability and recommend allocation upon request of ash users.

3. Paragraph C (Environmental Compensation)

• Environmental compensation for non-compliance is rationalised to ₹1000 per tonne of unutilised ash for failure to achieve minimum utilisation thresholds.
• Compensation collected shall be deposited with SPCB/PCC, with 75% retained by SPCB/PCC and 25% transferred to CPCB.
• Earlier slabs of ₹1500 per tonne are substituted with ₹1000 per tonne.

4. Paragraph E (Monitoring, Reporting and Audit)

• CPCB and SPCB/PCC shall continue as enforcing authorities, while CEA shall monitor utilisation and compliance on a quarterly basis.
• Reporting timelines are revised, and annual reports are to be published on official websites and submitted by 30 June.
• Compliance audit for ash disposal shall be conducted by authorised auditors or Certified Environment Auditors under the Environment Audit Rules, 2025, with audit reports to be submitted by 30 August every year.
• Action against non-compliant thermal power plants shall be initiated within 15 days of receipt of audit reports.

5. Annexure

• The reporting date “31st May” is substituted with “30th April”.

The notification states that it shall come into force on the date of its publication in the Official Gazette.