Law Updates

Subject

Summary: A shortage of natural gas can create serious problems for factories that depend on it for daily operations. Without a reliable fuel supply, businesses may struggle to maintain production schedules, operate machinery or plan their work. This is the situation that led the Pollution Control Committee (PCC) of Dadra and Nagar Haveli and Daman and Diu to allow the temporary use of alternative fuels. The PCC made another order on 25 September 2026 to extend the alternative fuel order already in force for another fifteen days. It was decided because of continued interruptions in the supply of natural gas. It was only a reprieve for the qualified industrial units, and it did not grant permission for factories to burn any fuel. All the conditions as listed in the previous PCC orders applied here too. For industrial owners, the important issue is not just whether alternative fuels were permitted. They also need to understand how long the permission lasted, which conditions applied and whether any later order allows them to continue using alternative fuels. As the September extension period has passed, businesses should confirm the latest regulatory position before relying on the permission. PCC Alternative Fuel Permission Order 2026: Key Details The Pollution Control Committee issued the September order as a continuation of earlier permissions granted during the natural gas supply disruption. The main details are provided below. Particulars Details Issuing Authority Pollution Control Committee (PCC) Jurisdiction Dadra and Nagar Haveli and Daman and Diu Order Date 25 September 2026 Order Number PCC/DDD/PET-COKE-FO(WP)(C)13029/1985/CPCB(DMN)/19-20/255 Subject Further Extension of Permission for Use of Alternative Fuels due to Continued Interruption in Supply of Natural Gas Main Reason Continued interruption in natural gas supply Extension Period Further 15 days from the date of issuance Earlier Orders Referenced 13 March, 21 May and 8 June 2026 Existing Conditions Remain unchanged Nature of Permission Temporary and subject to review Current Status September extension period has passed; any later authorisation must be verified The September directive is not a new system of approving fuel altogether. It only provides a temporary extension of an existing system. The importance of the distinction here lies in the fact that the industrial facilities have to consider both the new directive and the existing conditions. Why Did the PCC Extend Alternative Fuel Permission? Natural Gas Supply Problems Continued The main reason behind the extension was the continued shortage or interruption of natural gas. Many industrial processes depend on a steady fuel supply. Natural gas may be used in boilers, furnaces, heating equipment and other production activities. When supply becomes unreliable, businesses can face difficulties maintaining normal operations. The PCC had already allowed temporary alternative fuel use in March 2026. However, the supply situation had not improved sufficiently by September, which led the authority to extend the existing permission again. The September order does not give specific figures for the shortage or identify the individual industrial units affected. Industries Needed Temporary Fuel Arrangements Switching fuels is not always a simple decision for a factory. The available fuel must be suitable for the equipment, and its use must be permitted under the applicable environmental requirements.The temporary PCC permission was intended to address the difficulties caused by interrupted natural gas supplies. For eligible businesses, such an arrangement could make production planning more manageable during the authorised period. However, it did not remove the need to follow the earlier permission conditions. Why Was the Extension Limited? The PCC granted another short extension instead of making the permission permanent. The order clearly states that the arrangement is temporary and can be reviewed depending on natural gas availability, directions from the Central Pollution Control Board (CPCB) or other competent authorities, and prevailing conditions. This means businesses cannot assume that permission will continue simply because the fuel shortage has not ended. Timeline of Alternative Fuel Permission Orders in 2026 The September order was not the first decision taken by the PCC on this matter. The authority had issued earlier permissions and extensions during the year. Understanding this timeline helps businesses see how the temporary fuel arrangement developed. Date PCC Action What It Meant 13 March 2026 Initial temporary permission Allowed alternative fuel use during natural gas supply disruption, subject to conditions 27 March 2026 Further related extension order Continued the temporary arrangement 21 May 2026 Subsequent extension referenced in later orders Continued the earlier permission 8 June 2026 Additional extension Further extended the temporary arrangement 25 September 2026 Further 15-day extension Continued the existing permission without changing earlier conditions Initial Permission in March 2026 The PCC first issued temporary permission for alternative fuel use on 13 March 2026 because industries were facing interruptions in their natural gas supply. The permission was linked to the prevailing supply difficulties and did not establish a permanent exemption from environmental regulations. Further Extensions During 2026 With the persistence of problems with natural gas supply, the authority made more orders extending the interim arrangement. The subsequent extensions were based on the same principle of permitting certain industries to use other fuels temporarily under the conditions set out in earlier orders. September 2026 Extension On 25 September 2026, the PCC recorded that the natural gas supply situation remained disrupted. It therefore extended the existing alternative fuel permission for another 15 days. The order also confirmed that the earlier terms and conditions would continue to apply during the extended period. What Changed Under the September 2026 PCC Order? The September order made a limited but important change. It extended the validity of the temporary alternative fuel permission. It did not expressly introduce new registration fees, a fresh application process or revised emission standards. Permission Extended for Another 15 Days Industries that were already covered under the previous order were provided with an additional 15 days as per the terms of the arrangement. The order did not give any long-term approval for using alternate fuels automatically. Existing Conditions Remained Applicable All the terms and conditions mentioned in the earlier orders continued during the extension. This means businesses were still required to follow the restrictions and conditions that applied to their temporary fuel-use arrangement. The PCC Retained the Power to Review the Permission The authority also made it clear that the arrangement could be withdrawn, modified or extended again based on prevailing circumstances. The following table explains the position. Compliance Area Position Under the September Order Fuel Permission Existing temporary permission continued Validity Further 15 days from 25 September 2026 Earlier Conditions Remained applicable Permanent Approval Not granted New Application Requirement Not expressly introduced New Government Fees Not specified Review or Withdrawal Permitted Further Extension Possible, but not automatic For businesses, the main point is straightforward: the order extended the time available under an existing permission. It did not replace the environmental rules that normally apply to industrial operations. Which Industries Were Covered Under the Alternative Fuel Extension? The order concerns industrial units operating within the jurisdiction of the Pollution Control Committee of Dadra and Nagar Haveli and Daman and Diu. It is particularly relevant to businesses that were affected by interruptions in natural gas supply and qualified for the earlier temporary arrangement. Industries Using Natural Gas Factories that depend on natural gas for industrial operations may have been affected by the supply disruption. However, the September order does not independently identify every industry category or business eligible for the temporary fuel arrangement. An industrial unit must refer to the earlier permission conditions to establish whether it was covered. Geographic Applicability The order applies within the PCC's jurisdiction in: Dadra and Nagar Haveli Daman Diu Businesses operating in other states or Union Territories cannot automatically rely on this permission. They must follow the rules issued by their respective pollution control authorities. Does Every Factory Qualify? No automatic entitlement for every factory is established by the September order. Eligibility depends on the scope and conditions of the earlier permissions. Even if a business uses natural gas, it should not assume that every alternative fuel is permitted or that it can change its existing fuel arrangements without checking the applicable requirements. Conditions for Using Alternative Fuels Under the PCC Order The permission was temporary, and the earlier conditions continued to apply. Understanding this point is essential for businesses that are considering alternative fuel use. Earlier PCC Conditions Remain Important The September order refers to the previous permissions and confirms that their terms and conditions remain unchanged. A factory must therefore review the earlier orders rather than relying only on the September extension. The current document does not reproduce the complete list of authorised fuels or all operating conditions. Temporary Permission Is Not Permanent Fuel Approval A temporary extension should not be treated as permanent authorisation to use a different fuel. Businesses need to consider the specific permission, its conditions and the period for which it was valid. A decision to purchase fuel or modify equipment should not assume that temporary approval will continue indefinitely. Environmental Consent Conditions Still Matter Industrial units may also have conditions attached to their existing Consent to Operate (CTO). These conditions can be relevant when a business changes fuel use, production processes or pollution control arrangements. The September order does not state that every affected factory must apply for a new CTO. At the same time, it does not cancel other applicable consent requirements. Businesses should review their existing approvals and determine whether the intended fuel use is covered by the temporary order and other applicable permissions. How Long Was the Alternative Fuel Permission Valid? The order issued on 25 September 2026 provided a further 15-day extension from its date of issuance. This was a short-term arrangement, not an open-ended approval. Was the Permission Permanent? No. The PCC specifically described the permission as temporary. The authority also retained the right to review, modify, withdraw or further extend the arrangement when necessary. Is the September Extension Still Valid? The 15-day period granted under the September order has passed as of 21 October 2026. No later extension was identified in the official PCC notices reviewed on that date. However, the absence of a later notice in the reviewed listing does not conclusively establish that no subsequent direction exists. Businesses should confirm the latest position with the PCC before continuing to rely on the September permission. Can Businesses Continue Using Alternative Fuels After Expiry? Continued use cannot be justified by the September order alone after its authorised period. Whether a particular industrial unit can continue using an alternative fuel depends on any later valid permission, its existing environmental approvals and other applicable legal requirements. Can the PCC Withdraw or Modify Alternative Fuel Permission? The PCC has expressly stated that the temporary arrangement may be reviewed. A change in the circumstances that led to the permission could affect whether it continues. Improvement in Natural Gas Supply If natural gas availability improves, the PCC may reconsider whether the temporary arrangement is still needed. The September order does not specify a particular quantity or supply level that would automatically end the permission. Directions from Regulatory Authorities Directions from CPCB or other competent authorities may also influence the continuation or modification of temporary fuel permission. Businesses need to consider those directions where applicable rather than relying only on an earlier local order. Possibility of Further Extension The PCC may extend again if such is justified by the circumstances. But the order issued in September does not ensure that there will be an extension after this. It is best for industries to base their actions on official orders rather than on automatic extensions. How Does the Alternative Fuel Permission Affect Industrial Businesses? A temporary fuel arrangement can provide operational flexibility, but it also requires careful planning. For businesses using natural gas, the September order was relevant to both production decisions and environmental compliance responsibilities. Production Planning A factory that cannot obtain sufficient natural gas may find it difficult to maintain normal production schedules. Where alternative fuel use is legally permitted and technically suitable, it may provide another operating option during a shortage. However, the September order does not guarantee uninterrupted production or authorise every fuel that a business may wish to use. Fuel Procurement Decisions Businesses need to consider whether the fuel they intend to purchase is covered by the applicable permission. They should also assess whether the fuel is suitable for their equipment and whether its use affects existing environmental approvals. A short-term permission may not provide enough certainty for long-term procurement decisions. Environmental Compliance Responsibilities Factories remain responsible for following the environmental requirements that apply to their operations. The temporary permission does not automatically remove relevant emission standards, consent conditions or other restrictions. Where a business is uncertain about the requirements, an environmental compliance review may help identify matters that need clarification. Business Risks After Permission Expiry Continuing an activity without the required authorisation can create regulatory difficulties. However, the September order does not establish a new penalty or automatic closure requirement simply because the temporary period ends. Any legal consequence must be assessed under the actual governing provisions and applicable permissions. Environmental Compliance Requirements for Industries Using Alternative Fuels A change in industrial fuel can affect emissions, operating conditions and environmental management. Although the September order did not create a new environmental compliance framework, businesses must still consider the requirements that apply to their individual facilities. Consent to Operate Compliance A Consent to Operate is an important approval for industrial activities covered by applicable pollution control laws. A CTO may specify operating conditions relevant to the factory's activities, equipment or pollution control arrangements. Businesses using alternative fuels should review their existing consent conditions and check whether their arrangements are covered by the applicable permission. Where necessary, businesses may seek professional Consent to Operate compliance services to understand their responsibilities and determine whether further regulatory action is required. Air Pollution Control Requirements Different fuels can produce different emissions depending on their composition, equipment and combustion conditions. Industrial units must continue following applicable air pollution control requirements. The September extension should not be interpreted as a general exemption from legally applicable emission standards. Pollution Control Equipment Factories using industrial fuel may need suitable pollution control systems depending on their operations and the applicable requirements. Where a fuel change affects operating conditions, businesses should assess whether their existing arrangements remain appropriate. Any additional equipment or monitoring obligation must be based on applicable law, consent conditions or an enforceable regulatory direction. Compliance Documentation Maintaining organised compliance records can help a business review its regulatory position. Useful records may include: Copies of PCC orders relevant to the industrial unit. Existing Consent to Operate and other environmental permissions. Fuel-use information maintained under applicable requirements. Emission monitoring records where required. Relevant correspondence with the pollution control authority. Internal assessments of changes in operating conditions. This is a practical record-management list, not a new list of mandatory documents introduced by the September order. What Happens After the Alternative Fuel Permission Expires? The expiry of a temporary permission does not automatically create a new approval or extend an existing one. Once the authorised period ends, businesses must determine whether any subsequent order or other valid permission covers their operations. Check for Further PCC Orders Industrial units should review the latest directions issued by the Pollution Control Committee. Any new permission may contain a different validity period or conditions. Review Existing Fuel Permissions Businesses should examine which fuels are allowed under their existing approvals and the rules applicable to their operations. Where fuel restrictions apply, these cannot be ignored simply because a temporary relaxation was previously available. Avoid Assuming Automatic Renewal A natural gas shortage does not itself extend regulatory permission. Businesses should verify their legal position before continuing an arrangement that depended on temporary authorisation. What Should Industrial Units Do Next? Factories affected by the natural gas supply issue should take a practical approach to reviewing their compliance position. Action Why It Matters Review the PCC order Understand the actual extension and its limits Check earlier permissions Identify the conditions that remain applicable Confirm current validity Avoid relying on an expired permission Review existing CTO conditions Check whether fuel use is consistent with existing approvals Assess fuel suitability Consider operational and environmental implications Maintain relevant records Keep applicable permissions and compliance information available Follow further PCC directions Identify any changes in the regulatory position Seek professional advice where needed Clarify uncertain approval or compliance requirements These actions are intended to help businesses assess their position. The September order does not introduce this table as a mandatory government filing process. How Corpseed Can Help with Pollution Control Board Compliance Industrial businesses often need to understand several environmental requirements at the same time. These may include pollution control permissions, operating conditions, consent-related requirements and directions issued by the relevant authority. Temporary fuel permission can make that assessment more important, particularly when a business is changing its normal operating arrangements. Corpseed offers Pollution Control Board compliance services and related environmental compliance support for industrial businesses. Pollution Control Board Consent Assistance Businesses that need help understanding or meeting relevant pollution control consent requirements can explore Corpseed's State Pollution Control Board Consent/NOC services. The applicable authority, process and consent requirements depend on the location and nature of the industrial activity. Consent to Operate Compliance Support An industrial unit may need to review its CTO conditions when changes in operations or fuel use are being considered. Corpseed provides Consent to Operate annual compliance services, which may be relevant to businesses assessing their existing environmental obligations. Environmental Compliance Assistance Businesses may also require support in understanding applicable pollution control requirements, reviewing compliance documentation and identifying relevant approval-related actions. Professional assistance can help businesses understand their options, but it does not replace permission from the competent authority. Get Environmental Compliance Assistance from Corpseed If your factory is reviewing alternative fuel arrangements, pollution control permissions or Consent to Operate conditions, Corpseed can help you explore the relevant compliance services. Key Takeaways In continuation of this permission, the Pollution Control Committee, Dadra & Nagar Haveli and Daman & Diu passed the order dated 25th September 2026 to permit use of alternative fuels for an additional 15 days. The extension was issued because natural gas supply interruptions were continuing. It did not create permanent fuel-use permission or remove the conditions attached to earlier orders. The PCC retained the power to review, modify, withdraw or further extend the arrangement based on prevailing conditions and directions from the competent authorities. Now that the September extension period is over, the factories concerned must confirm that they have the most up-to-date permission for carrying out the provisional process. Factories must also look into their environmental clearances and seek the help of the Pollution Control Board in clarifying or taking any further compliance measures.