CAQM DG Set Restrictions in NCR: What Factories Face

Direct Answer

Across Delhi-NCR, CAQM restricts diesel gensets year-round and bans most of them outright when GRAP stages II-IV are invoked in winter. Non-compliance draws environmental compensation of ₹7,500-25,000 per set per day depending on size — doubled during GRAP — plus possible closure directions, while staying compliant means RECD retrofits, dual-fuel conversion or gas gensets costing lakhs per set. For factories, rooftop solar with battery storage cuts daytime grid dependence and carries essential loads through restricted hours, making it both a cost hedge and a DG-dependence hedge.

TL;DR

• Year-round (CAQM Direction 76, dated 29.09.2023, NCR-wide): diesel sets of 125-800 kW must run dual-fuel or with a retrofitted emission control device (RECD); 19-125 kW sets must be dual-fuel or are limited to emergency use; gensets up to 800 kW meeting CPCB-IV+ norms (MoEFCC GSR 804(E), 03.11.2022) face no restrictions.
• GRAP stages (revised 21.11.2025): Stage I at AQI 201-300 through Stage IV above 450; stages are cumulative and invoked proactively on air-quality forecasts.
• In winter, Stage I bars DG sets from substituting grid supply; Stages II-IV ban them entirely except exempted emergency services — and penalties double during GRAP.
• Gas conversion runs roughly ₹6-8 lakh for a 125 kVA set; solar plus battery storage sidesteps fuel-based compliance problems altogether.

The year-round DG regime in NCR

CAQM Direction 76, dated 29.09.2023, applies across the entire National Capital Region — not just Delhi. It sorts gensets into categories with hard obligations:

• Gas, LPG and biomass gensets: no restrictions.
• Diesel gensets up to 800 kW meeting MoEFCC's GSR 804(E) norms of 03.11.2022 — the CPCB-IV+ standard: no restrictions.
• Diesel gensets of 125-800 kW not meeting those norms: dual-fuel mode or a retrofitted emission control device (RECD) is mandatory.
• Diesel gensets of 19-125 kW: dual-fuel only; otherwise they are restricted to emergency use.
• Portable gensets below 19 kW: not permitted during GRAP.

This regime was built through a chain of directions — 54-57 (08.02.2022), 68 (14.09.2022), 71 and 73 (02.06.2023), and finally 76 (29.09.2023). We found no relaxation of the DG regime after November 2025; the direction of travel is tightening, not relief.

GRAP stages and the winter bans

GRAP — the Graded Response Action Plan — was revised on 21.11.2025 and now works as follows:

Stages are cumulative — each adds its measures to the previous ones — and they are invoked proactively based on IMD/IITM air-quality forecasts, so restrictions can begin before the smog does.

For industrial units operating gas-based gensets during the winter restrictions: dual-fuel operation (70:30 gas-to-diesel) is capped at 2 hours per day, and RECD-only operation is capped at 1 hour per day. In short, the compliance options narrow precisely when winter outages and production peaks coincide.

What non-compliance costs

CAQM's Standard Environmental Compensation schedule (issued 06.02.2024, revised 01.01.2025 and again on 07.07.2025) sets fines per DG set per day:

• ₹7,500 per day for sets of 20-125 kW
• ₹15,000 per day for sets of 125-800 kW
• ₹25,000 per day for sets of 800 kW and above

All of these amounts are doubled during GRAP, and persistent violation can bring closure directions — a far costlier outcome than any fine.

The compliant alternatives carry their own price tags. Converting a 125 kVA diesel set to gas was reported at roughly ₹6-8 lakh (per TOI, 2022); PNG gensets span roughly ₹6-46 lakh depending on size; and replacing ageing sets with CPCB-IV+ units from OEMs is a full capital cycle.

Why factories pivot to solar plus storage

The compliance math rarely stops at the genset shed. Usage caps, doubled GRAP fines and conversion capex make diesel an increasingly expensive insurance policy. Solar plus battery storage attacks the problem at the source: rooftop solar cuts daytime grid draw and energy cost, while the battery carries essential loads through outages and restricted hours — silently and without emissions.

Industry coverage through 2025 (Powerline, August 2025) points to hybrid gensets and solar-plus-storage as the practical compliance route for NCR industry. For a deeper comparison, see DG vs BESS backup power in India and the solar plus BESS business case for NCR industry — in the latter, the battery also earns its keep through ToD arbitrage, not just backup.

Practical next steps for an NCR facility

1. Audit your genset fleet against Direction 76 categories — size, fuel and certification status.
2. Map the backup loads that must ride through outages and GRAP-restricted hours.
3. Size rooftop solar for daytime consumption, with BESS sized for essential backup rather than full autonomy.
4. Plan the installation around production — see our factory solar shutdown plan guide.
5. Use available tax levers such as accelerated depreciation on solar to soften the capex.
6. Track adjacent obligations too, including the renewable consumption obligation deadline of December 2026.

Frequently Asked Questions

Are diesel gensets banned in NCR throughout the year?

No. The year-round regime restricts diesel gensets by size and certification — RECD or dual-fuel mandates for most diesel sets — but does not ban them. Outright bans arrive with GRAP: Stage I bars grid substitution, and Stages II-IV ban DG use entirely except exempted emergency services.

What is the fine for running a non-compliant DG set?

Under the Standard Environmental Compensation schedule, ₹7,500 per day per DG set for 20-125 kW, ₹15,000 per day for 125-800 kW, and ₹25,000 per day for 800 kW and above — all doubled during GRAP, with closure directions possible for persistent violation.

Do CPCB-IV+ gensets still need RECD?

No. Gensets up to 800 kW that meet MoEFCC's GSR 804(E) norms of 03.11.2022 — the CPCB-IV+ standard — face no restrictions under Direction 76. The RECD and dual-fuel mandates apply to diesel sets that do not meet those norms.

Can solar plus storage fully replace a DG set?

For many factories, a right-sized solar plus BESS system can cover essential loads during most outages, but full replacement depends on your backup duration needs, load profile and roof or ground space. A hybrid approach — solar, storage, and a compliant genset held for extended emergencies — is the common starting point.

Is gas conversion cheaper than solar plus storage?

Gas conversion solves the compliance problem (roughly ₹6-8 lakh for a 125 kVA set, per a 2022 report) but leaves you with ongoing fuel costs and, during winter restrictions, usage caps on gas-based operation. Solar plus storage carries higher upfront cost but reduces energy spend year-round and earns ToD arbitrage, so the comparison should be made over the full lifecycle, not just the conversion invoice.