Fly Ash Case : JSPCB Issues Fresh Show-Cause Notice To BPSCL For Persistent Environmental Violations

BPSCL now faces an environmental compensation demand of Rs 2.05 crore for non-compliance spanning 685 days

The Jharkhand State Pollution Control Board (JSPCB) has issued a renewed show-cause notice to Bokaro Power Supply Company Private Limited (BPSCL) over continued environmental non-compliance and failure to pay previously imposed penalties. BPSCL now faces an environmental compensation demand of Rs 2.05 crore for non-compliance spanning 685 days. An initial inspection resulted in a proposed penalty of Rs 71.32 lakh.

The BPSCL plant, which holds a valid Consent to Operate (CTO) until March 2028 for generating 358 MW of electricity and 300 MT/hour of boiler steam, first came under regulatory scrutiny in October 2022 due to a breach in environmental norms. An initial inspection resulted in a proposed penalty of Rs 71.32 lakh.

Despite giving a written assurance in April 2023 to rectify ash disposal issues and maintain ash pond infrastructure, subsequent inspections revealed that BPSCL had failed to act. The company neither submitted the required environmental compensation nor provided progress reports, despite repeated reminders from the board.

Matters worsened in early 2025 after media reports revealed that the ash ponds had reached maximum capacity. In its response to a March 2025 show-cause notice, BPSCL admitted that only four out of six ash ponds were operational, with three and a half ponds already full. The company attributed delays in ash evacuation to political and local interference.

The JSPCB is currently reviewing further legal and administrative actions against BPSCL for ongoing violations.

Bokaro Power Supply Company Pvt. Ltd. (BPSCL) is a Joint Venture of SAIL and DVC

Overview:

Bokaro Power Supply Company Pvt. Ltd. (BPSCL) was established on September 18, 2001, under the Companies Act, 1956, as part of Steel Authority of India Limited (SAIL)’s Business Reconstruction and Restructuring Plan. The creation of BPSCL aimed to bolster SAIL’s core activity—steel manufacturing—by ensuring a dedicated and reliable supply of power and steam to its Bokaro Steel Plant (BSL).

Business Operations:

BPSCL is engaged in the generation of power and steam and supplies both—at various pressure levels—to SAIL’s Bokaro Steel Plant to meet its industrial and process requirements. The company inherited a steam generation capacity of 660 tonnes per hour (T/hr) through a deed of transfer and assignment from SAIL, effectively taking over the power and steam generation functions previously managed directly by BSL.

Joint Venture Structure:

Following the acquisition of equity by Damodar Valley Corporation (DVC), BPSCL officially became a joint venture between SAIL and DVC, with both parties holding an equal 50:50 equity share. This strategic partnership combines SAIL’s industrial expertise with DVC’s energy management capabilities to ensure efficient, sustainable, and uninterrupted utility services for steel production.

www.indianpsu.com tried umpteen times to contact the office of Sudhir Kumar Jha, but leave talking to him, his staff refused to even provide his email to us.

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