The festival will be celebrated widely in northern India on November 7, and 8, and thousands of fireworks will be let off, contributing to already high polution levels.
However, if crackers are burst, despite strict orders in place, the air quality may deteriorate and fall under 'severe category'.
Citizens gathered outside the Environment Ministry Tuesday to protest against the alarming rise in the pollution level that has raised health concerns.
This scenario is likely to hold the locally generated crackers emissions within the NCT, slowing down the dispersion, resulting in increasing levels of PM2.5 and PM10 pollution, it said.
People in Delhi woke up to a thick blanket of smog spread all across the national capital early on Monday.
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Air quality will be "bad" on November 8 even if "partial toxic crackers" are burned compared to previous year, the Centre-run System of Air Quality Forecasting and Research (SAFAR) said.
At 2 p.m., the average particle pollutants across 35 regions of Delhi was 215 microgrammes per cubic meters, falling under the "very poor" category, against 257 or "severe" category at 9 a.m.
People residing in Delhi have been advised to avoid outdoor activities till 1 pm today as toxicity in the air will be high. Air quality will be "bad" on Thursday, 8 November - a day after Diwali - even if "partial toxic crackers" are used as compared to previous year, SAFAR said.
To address the air pollution situation, the Central Pollution Control Board (CPCB) said it was mulling inducing artificial rain over the city after Diwali to wash away hazardous pollutants plaguing the national capital. "The increase in PM2.5 concentration is due to change in wind direction, decrease in wind speeds and contribution from biomass burning", it said.
To control the situation that escalated previous year, the Supreme Court has banned the manufacture and sale of pollution-causing fireworks in New Delhi.
Coarser and highly unsafe PM2.5 or particles with diameter less than 2.5 mm continue to dominate the pollution factor in Delhi, and are still at least four times higher than the national standards and nine times the worldwide standards. This time is no different.