Union govt relaxes requirement for Flue-Gas Desulphurisation systems at coal-fired power plants, expected to cut electricity cost by 25-30 paise per unit
The union government has announced a significant policy shift by easing Sulphur emission norms for coal-fired power plants. In a move described by officials as a “delicate balance between costs, climate and compliance,” the decision is expected to lower electricity tariffs by 25–30 paise per unit for consumers.
The union govt has issued a gazette notification restricting the previous universal mandate from 2015 that required all coal plants to install flue-gas desulphurisation (FGD) systems. These systems remove Sulphur dioxide (SO₂) from exhaust gases emitted by coal-fired thermal power plants.
As per modified rules, only plants within a 10-kilometre radius of cities with populations exceeding one million are required to install FGDs. This means nearly 79% of India’s coal power capacity—those in less sensitive zones—will be exempt from this requirement. Plants located in critically polluted or non-attainment cities will be assessed individually.
The notification cited findings from the Central Pollution Control Board (CPCB), which noted that the existing control measures contributs to higher carbon dioxide emissions. “This is not a rollback. It is a recalibration based on evidence,” a senior government official explained. “Our approach is now targeted, efficient and climate-conscious.”
The policy has been revised based on detailed studies conducted by institutions such as IIT Delhi, CSIR-NEERI, and the National Institute of Advanced Studies (NIAS). These studies showed that ambient Sulphur Dioxide concentrations across most Indian cities fall well below the National Ambient Air Quality Standards (NAAQS) limit of 80 micrograms per cubic meter, and it typically ranged between 3 and 20 micrograms.
Indian coal, which has a relatively low Sulphur content of under 0.5%, along with the presence of tall stacks and favourable atmospheric conditions, aids in the effective dispersion of SO₂. As per experts, these factors reduce the need for widespread FGD installations.
One key concern addressed by the studies is the unintended environmental impact of retrofitting FGDs nationwide. The NIAS projected that such an effort would add 69 million tonnes of CO₂ between 2025 and 2030 due to increased mining of limestone, its transport, and additional energy consumption.
Industry leaders have praised the new framework. “This is a rational, science-based move that avoids unnecessary costs and focuses regulation where it is most needed,” said a senior executive at a major public-sector utility. “More importantly, it will help keep electricity affordable.”
The financial implications of mandatory retrofitting had raised alarms within the power sector. Earlier estimates placed the cost of FGD installations at over ₹2.5 lakh crore, or ₹1.2 crore per megawatt, with each unit requiring up to 45 days of downtime. Power producers warned that this could disrupt grid stability, especially during peak demand seasons.
Officials emphasised that environmental protection remains a priority, but must be approached with practicality. “This is a smarter lens, not a weakening of standards,” one official reiterated.
The government plans to submit an affidavit to the Supreme Court in the ongoing MC Mehta vs Union of India case, outlining the scientific basis and expected benefits of the revised FGD norms, which have been under judicial review.
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