The Ministry of Environment, Forest and Climate Change has revised its guidelines on the installation of Flue Gas Desulphurisation systems, limiting mandatory deployment to coal-based thermal power plants located within 10 kilometres of cities with populations over one million. The recalibrated framework is based on extensive scientific assessments and is expected to reduce the cost of electricity generation by 25 to 30 paise per unit, ultimately benefitting consumers and easing financial burdens on state distribution companies.
Plants situated in critically polluted areas or non-attainment cities will be evaluated individually, while those located beyond the designated urban thresholds—comprising nearly 79 percent of India’s total thermal power capacity—are exempted from compulsory FGD retrofitting. The previous national mandate was projected to cost over Rs 2.5 trillion, or Rs 1.2 crore per megawatt, with installation delays and grid reliability concerns cited during peak demand seasons.
Independent studies conducted by IIT Delhi, CSIR-NEERI and the National Institute of Advanced Studies confirmed that ambient sulphur dioxide levels across most Indian cities range between 3 and 20 micrograms per cubic metre—well below the National Ambient Air Quality Standards threshold of 80 micrograms per cubic metre. These findings indicated that a nationwide FGD rollout would be environmentally redundant and economically counterproductive.
Additional data highlighted that Indian coal typically has sulphur content below 0.5 percent, and existing tall stack structures combined with favourable atmospheric dispersion conditions mitigate the impact of sulphur dioxide emissions. Moreover, nationwide retrofitting of FGDs would generate an estimated 69 million tonnes of carbon dioxide from increased limestone mining, transportation, and power consumption between 2025 and 2030.
FGD systems are considered appropriate in geographies with high-sulphur coal, dense urban settlements and elevated ambient pollutant concentrations—conditions that are not widespread in India. This has prompted experts and industry stakeholders to welcome the targeted, evidence-based approach. A senior utility executive praised the move as “rational and science-backed,” underscoring its role in keeping electricity affordable while maintaining regulatory prudence.
Ministry officials clarified that the shift is not a dilution of environmental safeguards but a strategic realignment of regulatory focus. An affidavit containing the updated stance and supporting studies will be submitted to the Supreme Court in the ongoing MC Mehta vs Union of India case, which has previously scrutinised FGD enforcement timelines.
The government’s new position reinforces its commitment to smarter, location-sensitive regulation that balances environmental stewardship with economic imperatives, grid reliability and climate-conscious policymaking.
