Govt Relaxes FGD Norms for Thermal Power Plants; Power Costs Expected to Drop

The Indian government has eased the environmental rules for thermal power plants, offering relief to a large part of the energy sector. The Ministry of Environment, Forest and Climate Change has changed the 2015 emission norms that required all coal-based plants to install flue gas desulphurisation (FGD) units.

New Norms to Benefit Most Thermal Units

As per the updated policy, FGDs are now required only in select situations. These include coal-fired plants located within 10 km of cities with over 1 million people, in critically polluted zones, or those that use high-sulphur imported coal. This move could benefit nearly 79% of India’s thermal power stations.

Lower Electricity Costs for Consumers

Industry specialists believe that this change will lead to a drop in the cost of producing electricity. With FGD installation no longer needed for most plants, the generation cost could fall by 25 to 30 paisa per unit (kWh), which may lead to cheaper electricity bills for consumers.

FGD systems help remove sulphur dioxide (SO₂) from the smoke produced by coal combustion. Though effective, these systems are expensive to build and run. They also require a lot of water and produce additional carbon dioxide during use and maintenance.

Research Backs Targeted Approach

Three respected Indian institutions — IIT Delhi, CSIR-NEERI, and NIAS — carried out research that supported this new direction. Their findings showed that even areas without FGD units had sulphur dioxide levels within national safety standards. Moreover, installing FGDs everywhere could increase overall carbon emissions due to mining and energy demands.

Mixed Reactions from Experts

While environmentalists warn that this decision could delay efforts to improve air quality, government officials argue that the new policy is practical. It focuses pollution control where it is most needed, similar to what developed nations like the US, China, and those in the EU are already doing.