The degradation of ambient air quality in urban regions of India has been exacerbated by the expansion of automobile fleets and stationary engines. In response, the Central Pollution Control Board (CPCB), under directives from the Ministry of Environment, Forest, and Climate Change (MoEF&CC) and the National Green Tribunal (NGT), has implemented stricter emission norms, including CPCB IV+ standards for power generators. Concurrently, the escalating costs of diesel gensets, driven by the integration of advanced air-fuel systems and emissions control technologies, have necessitated the exploration of alternative fuels. Hydrogen-enriched compressed natural gas (HCNG), a blend of hydrogen and natural gas, has emerged as a promising solution for achieving low emissions while maintaining power performance. This study evaluates the application of an 18% HCNG blend in a genset engine initially compliant with CPCB II standards, achieving compliance with CPCB IV+ emission norms without requiring hardware modifications. Key calibration parameters, including injection timing, ignition timing, injection duration, and desired lambda, were optimized to ensure enhanced performance and emissions control. The in-cylinder combustion characteristics, including combustion pressure, temperature, rate of heat release (RoHR), and brake mean effective pressure (BMEP), were thoroughly analysed for both Piped Natural Gas (PNG) and the HCNG blend. The results indicate that the HCNG blend significantly reduces emissions, with reductions of 66% in carbon monoxide (CO) and 74% in methane (CH₄) compared to PNG. These findings underscore the potential of HCNG to serve as a transitional fuel, bridging the gap towards the adoption of pure hydrogen technologies. This study demonstrates that HCNG can achieve substantial reductions in regulated emissions while supporting cleaner and more sustainable energy systems, positioning it as a viable alternative for stationary power generation applications.