In a major policy shift, the Ministry of Environment, Forest and Climate Change (MoEFCC) has eased the blanket requirement for flue gas desulphurisation (FGD) systems across India’s coal-fired thermal power plants. The new guidelines adopt a location-based approach, focusing on plant proximity to urban areas, local air quality, and coal sulphur content, rather than imposing uniform compliance.

Under the revised framework, only thermal power units within 10 kilometres of cities with populations exceeding one million must install FGDs. Plants located in critically polluted zones or non-attainment cities will be assessed on a case-by-case basis. This change effectively exempts around 79 per cent of India’s installed coal-based power capacity from mandatory FGD installation.

The decision follows an extensive review involving IIT Delhi, CSIR-NEERI, and NIAS. Their studies revealed that ambient sulphur dioxide (SO₂) levels in most of India range between 3–20 µg/m³—well below the 80 µg/m³ limit prescribed under National Ambient Air Quality Standards. Additionally, Indian coal typically contains less than 0.5 per cent sulphur, and tall stacks coupled with favourable meteorological conditions aid pollutant dispersion.

The ministry also cited the high cost and carbon footprint of a universal FGD rollout. The earlier policy was estimated to cost over Rs 2.5 trillion (Rs 2.5 lakh crore), translating to Rs 120 million (Rs 1.2 crore) per MW, while potentially adding 69 million tonnes of CO₂ emissions due to limestone mining, transport, and extra energy consumption between 2025 and 2030.

Electricity costs are expected to fall by 25–30 paise per unit as a result of the relaxed norms, providing relief to both consumers and state discoms.

"This is not a rollback but a recalibration," said a senior ministry official. “It’s about smarter, evidence-driven governance, tailored to India’s specific environmental conditions.”

Industry stakeholders have broadly welcomed the move. A senior executive from a public sector utility described it as “a science-based, economically rational decision that balances sustainability with affordability.”

The ministry reiterated its commitment to environmental protection through more focused regulation. An affidavit detailing the findings and revised policy will be submitted to the Supreme Court in the ongoing MC Mehta vs Union of India case, where FGD timelines have been under judicial scrutiny.