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Law Update
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Natural gas supply disruption has prompted CAQM to give businesses in the National Capital Region more time to use specified alternative fuels.
Through its Order dated 13 August 2026, the Commission extended an existing relaxation from the Standard List of Approved Fuels under Direction No. 65 dated 23 June 2022, as amended. The arrangement relates to industries, hotels, restaurants and other enterprises in NCR, including NCT of Delhi.
The Order refers to High Speed Diesel (HSD), biomass and Refuse-Derived Fuel (RDF) pellets as alternatives that had temporarily been permitted in place of natural gas. Coal and kerosene were also covered for the temporary period where availability of those alternative fuels was limited.
The latest extension runs up to 13 September 2026, but this date should not be treated as an unconditional right to continue using alternative fuels until then. The Order links the arrangement to the restoration of normal gas supply and further orders from the Commission.
For affected businesses, the main issue is therefore not simply which fuel may be used. They also need to understand the temporary nature of the permission and how it fits with their wider environmental approvals and operating conditions.
| Particular | Details |
| Issuing Authority | Commission for Air Quality Management in National Capital Region and Adjoining Areas |
| Document Type | Order |
| Order Date | 13 August 2026 |
| Subject | Extension of relaxation in Standard List of Approved Fuels |
| Relevant Direction | Direction No. 65 |
| Direction Date | 23 June 2022 |
| Geographic Coverage | National Capital Region, including NCT of Delhi |
| Entities Referred To | Industries, hotels, restaurants and other enterprises |
| Specified Alternative Fuels | HSD, biomass and RDF pellets |
| Other Fuels Mentioned | Coal and kerosene, subject to the stated temporary condition |
| Reason | Continuing disruption in natural gas supply |
| Previous Extension | Up to 13 August 2026 |
| Latest Extension | Further period of one month |
| Date Stated in Latest Order | 13 September 2026 |
| Nature of Relief | Temporary and conditional relaxation |
The Order does not create a completely new fuel policy. It continues an emergency arrangement that had already been operating because of disruption to natural gas supplies.
That difference matters. A temporary relaxation gives businesses short-term flexibility. A permanent amendment would change the normal regulatory framework itself. The present Order should not be treated as proof of such a permanent change.
CAQM issued Direction No. 65 on 23 June 2022 to establish a standard list of approved fuels for different applications across NCR.
CAQM explained in the Direction that fuel use contributes to air-quality conditions in the region and that fuel lists had earlier differed across NCR states. It therefore sought a more uniform framework and a move towards cleaner fuels.
The approved list was subsequently revised. The CAQM website records an addendum dated 3 April 2023 containing amendments or modifications to the approved-fuel list.
The revised list includes different fuels for different purposes rather than treating every listed fuel as approved for every establishment or application. For example, natural gas is listed for vehicular, industrial, and domestic purposes, while other fuels have specified applications.
That is why the 2026 relaxation is important. The Commission temporarily allowed specified businesses affected by the gas-supply problem to move beyond the ordinary fuel position under stated circumstances.
It does not mean that every fuel mentioned in the temporary Order has become generally approved for every purpose across NCR.
The main change is time. CAQM has given the existing temporary relaxation another month rather than creating a fresh permanent fuel category.
| Compliance Area | Earlier Position | Position Under 13 August Order | Business Meaning |
| Fuel relaxation | Temporary relief already available | Relief continues | Eligible establishments get additional time. |
| Validity | Earlier extended to 13 August 2026 | Extended further to 13 September 2026, subject to conditions | Businesses have additional temporary flexibility. |
| Natural gas disruption | Supply problem had led to earlier relaxation | Ministry reported disruption was continuing | Reason for the relief had not ended. |
| HSD, biomass and RDF pellets | Temporarily allowed in place of natural gas | Existing relaxation extended | No fresh permanent approval is created |
| Coal/kerosene | Permitted for a temporary period where alternative-fuel availability was limited | Underlying relaxation continues | Should not be interpreted as unrestricted coal/kerosene permission. |
The Order dated 13 August refers back to the earlier arrangements rather than rewriting each condition from the beginning.
Businesses therefore need to read the latest extension together with the terms of the earlier relaxation.
The reason given is the continued disruption of natural gas supplies.
According to the Order, the Ministry of Petroleum and Natural Gas informed CAQM on 13 August, 2026 that the disruption, which began in early March because of geopolitical developments in the Middle East, was continuing. The Ministry also communicated that the relaxation could be extended for another month or until normal gas supply returned.
For businesses dependent on natural gas, a prolonged supply problem can affect normal operations. CAQM's response has been to continue the temporary flexibility rather than requiring affected establishments to rely only on gas during the disruption.
This is therefore best understood as an exceptional supply-related arrangement, not a general move away from the approved-fuel policy.
The Order expressly refers to four broad categories in the National Capital Region.
| Entity | Expressly Mentioned? | Relevance |
| Industries | Yes | Industrial establishments affected by natural gas availability |
| Hotels | Yes | Covered within the temporary arrangement |
| Restaurants | Yes | Covered within the temporary arrangement |
| Other enterprises | Yes | Coverage depends on the scope and conditions of the relaxation |
Where gas availability has been disrupted, the temporary arrangement may provide fuel flexibility. That does not remove the need to check whether the proposed fuel is suitable for the establishment and consistent with other applicable conditions.
The Order should not be interpreted to mean that every fuel choice by every restaurant in NCR is automatically permitted.
Businesses should therefore avoid assuming coverage solely because they operate in NCR. Applicability should be considered against the terms of the Order and the establishment's actual fuel use.
The Order describes three principal alternatives temporarily permitted in place of natural gas: High Speed Diesel, biomass, and RDF pellets.
High Speed Diesel (HSD)
High Speed Diesel is one of the alternatives named in the temporary arrangement.
Its inclusion in the emergency relaxation should not be confused with a permanent general approval of HSD for all industrial or commercial applications in NCR. Under CAQM's revised standard fuel list, diesel already has specified permitted uses. The emergency Order deals separately with temporary use arising from the natural gas disruption.
Biomass
Biomass is also named as an alternative under the temporary arrangement.
CAQM's wider approved-fuel framework already contains biomass-related provisions for certain applications. The temporary relaxation is relevant because it allows it use in the particular gas-supply situation described by the 2026 Orders. The August Order does not itself set out technical specifications, emission limits or fuel-quality parameters for biomass. Such conditions should therefore not be invented from this Order.
RDF (Refuse-Derived Fuel) Pellets
RDF stands for Refuse-Derived Fuel. RDF pellets are expressly mentioned in the temporary fuel arrangement.
Again, the temporary permission should be read in context. The standard approved-fuel list contains application-specific provisions for RDF, while the emergency relaxation arose because of the disruption in natural gas supply.
The relaxation does not create unrestricted permission to use coal or kerosene across NCR.
The August Order records that when the temporary arrangement was introduced, coal and kerosene could also be used where there was a limitation in the availability of the specified alternative fuels.
That condition is important.
The correct reading is not:
"Coal is now an approved industrial fuel throughout NCR."
Rather, coal and kerosene form part of a limited, temporary response to an exceptional supply situation.
CAQM's normal approved-fuel framework is considerably narrower regarding coal. The revised Direction No. 65 material states, for example, that low-sulphur coal is permitted as fuel only in thermal power plants in NCR under the standard framework.
The March relaxation also expressly stated that other provisions of Direction No. 65, as amended, would continue to remain in force.
Businesses should therefore avoid treating the temporary coal/kerosene concession as a permanent entitlement.
| Date | Development | Practical Meaning |
| 13 March 2026 | Temporary alternative-fuel arrangement introduced | Businesses affected by natural gas disruption received temporary flexibility |
| 12 June 2026 | Relaxation extended | Relief was continued up to 13 August 2026 |
| 13 August 2026 | Latest Order issued | CAQM approved another extension |
| 13 September 2026 | Date specified in latest extension | Current outer date under the Order, subject to earlier restoration/further orders |
The latest Order itself records both the earlier temporary arrangement and the subsequent extension up to 13 August.
The repeated extensions should not be treated as evidence that CAQM has permanently liberalised its fuel policy. Each extension has remained tied to the abnormal natural gas supply situation.
The 13 August 2026 Order extends the relaxation for a further month, up to 13 September 2026, subject to the conditions stated in the Order.
The language also links the arrangement to restoration of normal gas supplies and any further orders from CAQM.
In practical terms, a business should not assume that:
The safest approach is to follow the latest official CAQM communication rather than working from an old extension order.
No permanent change should be inferred from the 13 August Order.
The document repeatedly deals with an extension of relaxation, not permanent substitution of Direction No. 65.
This distinction becomes even clearer when the original relaxation is read with CAQM's published material. The initial relaxation said that other provisions of Direction No. 65, as amended, would remain unchanged and continue in force.
A permanent change would normally alter the approved list or modify the underlying Direction itself. Here, businesses have instead been given time-bound flexibility because the normal natural gas supply situation has been disturbed.
That means a company planning its long-term energy strategy should not treat HSD, biomass, RDF, coal, or kerosene availability under this emergency arrangement as proof that the same position will continue once the relaxation ends.
For affected industrial units, the main benefit is short-term operating flexibility.
A unit that would otherwise depend on natural gas may have an alternative during the supply disruption. This can help reduce the risk of an immediate operational interruption where the relaxation legitimately applies.
There are, however, practical questions that need attention.
Hotels and restaurants are expressly included in the temporary arrangement.
For these businesses, the Order may matter where gas-dependent equipment or operations have been affected by the natural gas supply situation.
The relief should still be read carefully. It does not say that every hotel or restaurant may use every alternative fuel for every purpose. Nor does it remove application-specific conditions contained elsewhere in CAQM's normal approved-fuel framework.
For instance, CAQM's revised approved-fuel list contains specific provisions for charcoal and biomass-related fuels for certain hotel, restaurant, banquet-hall, tandoor and grill applications.
The emergency Order and the normal fuel list therefore need to be distinguished rather than mixed.
The Order was addressed to senior officials of the relevant pollution-control authorities in NCR.
These include:
The Order was also copied to the Ministry of Environment, Forest and Climate Change, the Chief Secretaries of the concerned governments, and the Chairman of the Central Pollution Control Board.
This administrative circulation reflects the regional nature of the CAQM framework.
However, the August Order does not expressly state that every business using the relaxation must submit a fresh application to these boards. Such a requirement should not be created without checking the establishment's other applicable approvals and conditions.
The Order should not automatically be read as changing every Consent to Establish, Consent to Operate, authorisation or site-specific environmental approval held by an individual business.
The relief comes from CAQM's approved-fuel framework. A separate approval held by an industrial unit may contain its own operating or fuel-related conditions.
Businesses may therefore need to review, as applicable:
This does not mean the August Order itself requires every business to obtain a revised consent. That requirement is not expressly stated in the supplied Order.
The correct approach is to check whether another approval independently needs attention before making the operational change.
The Order itself does not give any cost figures. The financial effect will differ from one business to another.
Prices, transport arrangements, and availability may differ from natural gas. A business that changes fuel for only a short period also has less certainty over how long the new supply arrangement will be required.
Some establishments may already have equipment capable of using another fuel. Others may face technical adjustments or may find that a particular alternative is unsuitable.
Moving from piped gas to a physical fuel may change storage, receiving and handling requirements. This should be assessed at site level rather than assumed from the CAQM Order.
A change in fuel can affect how existing air-pollution-control equipment is operated. Businesses should review whether their controls remain appropriate.
Temporary switching can create a second adjustment later. Once the relaxation ends or normal supply returns, an establishment may need to move back to its regular fuel arrangement.
For this reason, the lowest immediate fuel price should not be the only consideration. Duration, equipment suitability, approvals, and the ability to reverse the change also matter.
| Potential Benefit | Possible Challenge |
| Helps affected units continue operations during gas disruption | Relief is temporary. |
| Gives access to specified alternative fuels | Alternative fuel availability may vary |
| Reduces immediate dependence on disrupted natural gas supplies | Equipment may not support every alternative |
| Gives businesses short-term procurement flexibility | Storage and handling arrangements can change |
| Reduces immediate supply vulnerability | Environmental approval conditions still need review |
| Allows time to manage the disruption | Future extension cannot be assumed |
The policy offers breathing space to establishments facing a genuine fuel-supply problem. At the same time, the temporary nature of the arrangement limits how far businesses can rely on it for long-term planning.
Businesses considering a temporary fuel change should focus on a few practical checks rather than assuming the Order by itself answers every compliance question.
1. Confirm Whether the Relaxation Applies
Check whether the establishment falls within the category and geographical scope referred to by the CAQM. An NCR location alone should not replace a proper applicability check.
2. Identify the Fuel Being Proposed
HSD, biomass, and RDF pellets are directly named as alternatives. Coal and kerosene are subject to the additional condition linked to the limited availability of those alternative fuels. That difference should be recorded internally.
3. Review Existing Approval Conditions
Check whether an existing environmental consent or site-specific approval also contains a fuel condition that may also need consideration.
4. Check Technical Suitability
A legal relaxation does not establish that a particular machine or process is technically suited to a fuel. Plant, safety, and engineering teams should assess the proposed change.
5. Keep a Clear Regulatory Record
As an internal control, businesses may keep:
These are practical record-keeping measures. The August Order itself does not prescribe such a document list.
6. Monitor New CAQM Orders
This is especially important because the relief is time-bound. Teams should work from the latest Order rather than relying on an older copy obtained when the relaxation was first introduced.
7. Plan for Reversal
Businesses should know how they will return to their normal approved fuel arrangement if gas supplies are restored or the relaxation ends.
The present Order does not guarantee what will happen after 13 September 2026.
There are broadly three matters to watch.
Another extension is therefore possible but not confirmed. Businesses should avoid presenting it in budgets, compliance planning, or long-term fuel contracts as a certainty.
The Order can be seen as practical relief during an abnormal energy-supply problem, but it also creates planning questions because businesses cannot treat the relaxation as permanent.
| Assessment Area | Positive Side | Possible Burden or Concern |
| Energy availability | Gives businesses alternatives during gas disruption | Availability of alternative fuel can also be uncertain |
| Industrial continuity | May help plants avoid immediate interruption | Switching fuel may require operational adjustments |
| Hotels and restaurants | Provides temporary flexibility to covered establishments | Not every alternative will suit every operation |
| Fuel procurement | Expands short-term sourcing options | New suppliers and logistics may need to be arranged |
| MSMEs | Can provide relief where gas disruption threatens operations | Smaller businesses may have limited technical or compliance resources |
| Environmental management | Relief remains controlled and time-bound | Different fuel use may need closer operational review |
| Compliance planning | The Order provides a defined temporary route | Other approval conditions still need to be considered |
| Long-term certainty | Businesses receive immediate relief | Future extensions cannot be assumed |
| Air-quality policy | Basic Direction No. 65 framework remains in place | Exceptional fuels have to be managed carefully |
| Temporary nature | Prevents emergency relief from automatically becoming permanent policy | Businesses may have to switch again when relief ends |
Where the Decision Helps
Without temporary flexibility, establishments facing a genuine natural gas shortage could be placed in a difficult position: comply with a normal fuel rule while lacking reliable access to the fuel on which their operations depend.
The extension addresses that immediate conflict. It also avoids rewriting the entire approved-fuel framework merely because of a temporary supply disturbance.
Where the Burden Remains
Fuel switching is not necessarily as simple as buying a different fuel.
Businesses may need to consider technical compatibility, procurement, storage, operating procedures, pollution-control systems and existing approvals. A change that lasts only a few weeks can also be difficult to justify if expensive physical modifications are required.
Assessment
On balance, the extension appears to function as short-term operational relief rather than permanent deregulation.
That makes sense in an exceptional supply situation, provided businesses maintain a clear distinction between temporary permission and their normal fuel position. The greater risk would arise if an enterprise treats the relaxation as a permanent right and continues with an alternative fuel after the legal basis for the concession has ended.
Regulatory Perspective
CAQM's approach keeps two ideas separate.
The first is its broader policy of regulating approved fuels across NCR in the interest of air-quality management.
The second is recognition that an exceptional energy-supply problem can make temporary flexibility necessary.
Direction No. 65 remains the underlying framework, while the 2026 Orders operate as time-limited relief. CAQM's original relaxation also stated that the other provisions of Direction No. 65 would continue unchanged.
Business Perspective
For a business, the immediate concern is continuity.
A temporary alternative can be useful where the regular fuel supply is unreliable. But procurement teams should coordinate with EHS, engineering, and compliance teams rather than treating the issue as a simple purchasing decision.
The question is not just:
"Can this fuel be purchased?"
It is also:
"Can this establishment use it under the temporary relaxation, can its equipment handle it, and are there any other applicable approval conditions?"
That combined review gives businesses a safer basis for action.
Several practical risks deserve attention.
The next development will depend largely on the natural gas supply position and any further CAQM action.
Businesses should monitor:
A future extension should be treated as confirmed only after it is officially issued.
Likewise, a permanent change in the approved-fuel framework should not be inferred from continued emergency relief.
Temporary fuel switching can touch more than one area of environmental compliance. The correct position may depend on the type of establishment, location, existing consent conditions, equipment and fuel being considered.
Corpseed's environmental compliance services can support businesses with the following areas:
Corpseed can review the relevant CAQM Order and help identify whether the relaxation applies to the establishment and proposed fuel use.
Existing environmental conditions can be reviewed alongside the temporary CAQM relaxation to identify possible compliance gaps before an operational change is made.
Where a Consent to Establish, Consent to Operate or modification is independently required under the applicable regulatory framework, Corpseed can assist with the review and filing process.
This does not mean the 13 August Order itself requires every business to amend its consent.
Businesses can seek support in understanding whether their proposed fuel change is consistent with the applicable CAQM framework and relevant pollution-control conditions.
Corpseed can assist in organising applicable orders, approval documents and supporting compliance records so that the business has a clearer regulatory trail.
Where CAQM requirements interact with CPCB, DPCC or State Pollution Control Board conditions, Corpseed can assist businesses in reviewing the applicable regulatory position.
A time-bound Order needs monitoring. Corpseed can support businesses with environmental regulatory updates and continuing compliance requirements as the position changes.
Businesses in NCR that are considering a temporary fuel change can obtain professional environmental compliance support before making operational decisions based on the relaxation.
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