India Eases Emission Norms for Thermal Power Plants, Power Cost May Come Down By 25-30 Paise

In a major regulatory update, Ministry of Environment, Forest and Climate Change has revised its 2015 emission standards for thermal power plants, significantly relaxing the mandatory requirement for flue gas desulphurization (FGD) systems.

The new guidelines adopt a more nuanced approach to pollution control while potentially benefiting nearly 80% of the country's coal-fired plants.

Under the revised framework, FGD installation will remain compulsory only for plants located within 10 kilometres of cities with populations exceeding one million, including the National Capital Region, according to a report in Live Mint. The mandate also applies to facilities in critically polluted areas or non-attainment cities, though these will be evaluated case-by-case by a central expert committee. Plants burning high-sulphur imported coal must also continue using the emission control technology. The policy shift follows extensive research by three premier Indian institutions - IIT Delhi, CSIR-NEERI and the National Institute of Advanced Studies. Their findings indicated that ambient sulfur dioxide levels remain within acceptable limits even at plants without FGD systems in many regions.

The decision also considers the substantial costs associated with FGD technology, which industry estimates add 25-30 paise per kilowatt-hour to generation expenses.

Environmental advocates have expressed concerns that the relaxed standards could impede progress toward cleaner air targets. However, government officials emphasize the move represents a more strategic allocation of resources, focusing pollution control efforts where they're most needed. They note the approach mirrors policies in developed nations like the United States and European Union members, where FGD requirements are similarly targeted rather than universal.

The revised norms exempt smaller Category C plants outside major urban centers from FGD mandates, provided they meet existing stack height regulations established in 1990.

Officials highlight that this balanced approach acknowledges India's continued heavy reliance on thermal power, which currently supplies about 80% of the nation's electricity, while still maintaining environmental safeguards in high-priority areas. Meanwhile, energy experts suggest the policy reflects the practical challenges of India's energy transition, seeking to maintain reliable power supplies while working toward long-term sustainability goals. The government maintains that the updated standards were developed after careful study of both environmental impacts and economic realities in the power sector.