India Revises Flue Gas Desulphurisation Policy for Power Plants
The Ministry of Environment and Forests announced change in the regulation of flue gas desulphurisation (FGD) units for thermal power plants in India in July 2025. The new policy exempts the majority of coal-fired power plants from installing FGD systems. This move is described as a scientifically justified shift towards targeted, cost-effective, and climate-coherent regulation rather than a rollback of environmental safeguards. The decision follows years of partial compliance and concerns about the cost and environmental impact of mandatory FGD installation.
Background of FGD Regulation in India
FGD units reduce sulphur dioxide (SO₂) emissions from coal plants. In 2015, India mandated FGD installation for all thermal power plants. However, only about 8% of the country’s 180 coal plants had installed these systems by 2025. Extensions were granted due to limited availability and high costs. The new policy narrows the requirement to a minority of plants based on location and pollution impact.
New Categorisation of Thermal Power Plants
Thermal plants are now divided into three categories:
- Category A: About 11% of units near major cities or the National Capital Region (within 10 km) must install FGD by December 2027.
- Category B: Around 11% near Critically Polluted Areas (CPAs) or Non-Attainment Cities (NACs) may have to install FGDs based on Expert Appraisal Committee decisions, with a deadline of December 2028.
- Category C: The remaining 78% are exempt from FGD installation.
Rationale Behind the Revised Policy
The Ministry cited declining ambient SO₂ levels and the limited role of SO₂ in driving PM2.5-related health impacts as key reasons for the change. India’s SO₂ standards (50 micrograms per cubic metre annually) are stricter than those of Japan, the EU, and Australia. A 2023 survey of 492 cities found only two non-compliant cities. Indian coal naturally contains low sulphur (0.5%) but high ash, resulting in relatively low SO₂ emissions.
Cost-Benefit Analysis of FGD Installation
Installing FGD units is expensive, costing approximately ₹1.2 crore per megawatt. The total capital expense for all plants would reach ₹2.54 lakh crore. The Ministry stated that eliminating all SO₂ emissions would only marginally reduce particulate matter concentrations and health risks. Studies showed no difference in SO₂ levels between plants with and without FGDs.
Environmental and Health Implications
The policy reflects a balance between environmental goals and economic feasibility. By focusing on areas with poor air quality, it aims to reduce pollution where it matters most. The exemption of many plants recognises the limited effectiveness of FGDs in improving air quality in regions with already low SO₂ levels.
Implementation and Compliance Deadlines
Category A plants must comply by 30 December 2027. Category B plants’ requirements depend on expert review, with a deadline of 30 December 2028. Category C plants remain exempt. The Ministry continues to monitor air quality and pollution levels to adjust regulations as necessary.
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