The Union Ministry of Environment, Forest and Climate Change has eased the mandatory installation requirements for Flue Gas Desulphurisation (FGD) systems in a majority of India’s coal-based thermal power plants. This strategic shift, announced today, aims to balance environmental protection with economic realities, potentially reducing electricity costs by an estimated 25 to 30 paise per unit. The decision, rooted in extensive scientific studies, marks a move towards a more differentiated and evidence-based approach to industrial emission control, crucial for maintaining energy affordability in a rapidly developing economy.
The revised framework restricts mandatory FGD installation primarily to plants located within a 10-kilometre radius of cities with populations exceeding one million. Plants situated in critically polluted areas or non-attainment cities will undergo case-by-case evaluations. This differentiated strategy exempts approximately 79 per cent of India’s thermal power capacity from the universal FGD mandate that was previously envisioned. Industry stakeholders have largely welcomed this move, citing significant financial relief from a compliance burden estimated at over Rs 2.5 lakh crore, which would have translated into higher power tariffs and potential grid instability during peak demand periods.
Crucially, the policy adjustment is underpinned by comprehensive studies conducted by leading Indian institutions, including IIT Delhi, CSIR-NEERI, and the National Institute of Advanced Studies (NIAS). These studies meticulously analysed ambient sulphur dioxide (SO2) levels across various Indian cities, consistently finding them to be well within the National Ambient Air Quality Standards (NAAQS) threshold of 80 µg/m³, often ranging between a mere 3 and 20 µg/m³. The research also highlighted that Indian coal typically possesses a low sulphur content, generally less than 0.5 per cent, and that existing tall stack heights, coupled with favourable meteorological conditions, facilitate efficient SO2 dispersion, rendering a blanket FGD mandate largely inefficient for most plants.
Furthermore, the NIAS study presented a compelling environmental counter-argument, projecting that a nationwide FGD retrofitting drive could paradoxically add an estimated 69 million tonnes of carbon dioxide emissions between 2025 and 2030. This increase would largely stem from the heightened requirements for limestone mining, transportation, and the augmented power consumption necessary for operating FGD systems. Such a revelation aligns with the broader global agenda of achieving net-zero carbon emissions, advocating for targeted interventions over indiscriminate ones that might inadvertently escalate the overall carbon footprint.
Officials from the Environment Ministry underscored that this is not a policy rollback but rather a “recalibration based on evidence,” aimed at fostering a more targeted, efficient, and climate-conscious regulatory framework. The decision is set to be formally presented to the Supreme Court in the ongoing MC Mehta vs Union of India case, where FGD enforcement timelines have been under judicial review. This pragmatic approach seeks to optimise environmental protection efforts by focusing resources where they are most impactful, thereby ensuring that economic growth and environmental stewardship proceed in a synergistic manner for the sustained development of India’s urban and rural landscapes.
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