Centre Eases FGD Norms For Power Plants; Electricity Costs To Come Down

The Ministry of Environment, Forest and Climate Change has eased the rules for mandatory installation of flue gas desulphurisation (FGD) systems at coal-based thermal power plants. The move introduces targeted compliance based on urban proximity and coal sulphur content.

Under the new framework, only plants within 10 kilometres of cities with over one million people must install FGDs.

Plants in critically polluted areas or non-attainment cities will be assessed individually. All other plants — covering nearly 79 per cent of India’s thermal power capacity — are now exempt.

The decision, however, follows long deliberations and findings from multiple expert studies. The changes aim to balance environmental safety with economic efficiency.

Lower electricity cost and grid stability

Officials said the relaxed norms could lower electricity costs by 25 to 30 paise per unit. Experts believe this will help consumers directly. It will also ease pressure on state discoms and reduce subsidy burdens for governments.

Earlier, the financial burden of nationwide FGD retrofitting was estimated at over ₹2.5 lakh crore. It required ₹1.2 crore per megawatt and 45 days of installation per unit.

Power producers warned this would drive up power prices and risk grid stability during high-demand periods.

Reports from IIT Delhi, CSIR-NEERI, and the National Institute of Advanced Studies (NIAS) shaped the final decision. These studies found that sulphur dioxide levels in most Indian cities are between 3 and 20 µg/m³.

This is well below the national threshold of 80 µg/m³. They also noted that Indian coal contains less than 0.5% sulphur.

High stack heights and favourable weather help disperse emissions. The NIAS warned that large-scale FGD use could add 69 million tonnes of carbon dioxide between 2025 and 2030 due to increased mining and energy use.

FGDs are most effective in countries with high sulphur coal, dense cities, and high sulphur dioxide levels. India, studies found, does not face such issues on a large scale.

Industry leaders welcomed the move. “It is a rational, science-based step that avoids unnecessary costs and keeps power affordable,” said a senior executive from a public utility.

Officials stressed that the government still prioritises the environment.

“This is not a rollback. It’s a recalibration based on science,” one official said. “Our approach is now targeted, efficient and climate-conscious.”

An affidavit detailing these findings will be submitted soon to the Supreme Court in the MC Mehta vs Union of India case, where FGD deadlines have faced legal review.

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