India Rolls Back Key Emission Norms for Most Coal Plants

In a major policy shift, India has officially rolled back a decade-old mandate requiring coal-fired power plants to install flue-gas desulphurisation (FGD) units—equipment originally intended to curb sulphur dioxide (SO₂) emissions at an estimated cost of ₹2.5 lakh crore (USD 30 billion).

The Ministry of Environment issued a gazette notification on 11 July 2025, exempting 79% of coal-based power plants from the 2015 emission norms. Specifically, plants located beyond a 10-km radius of densely populated or high-pollution urban areas are no longer required to install the pollution control systems.

The decision comes in response to rising electricity demand, financial pressures on power producers, and concerns about grid stability. Initially introduced to combat industrial air pollution, the FGD mandate has faced strong opposition from industry stakeholders, who warned of cost overruns and potential disruptions in power supply.

Coal currently accounts for over 70% of India’s electricity generation, positioning the country among the world’s largest coal consumers. While environmental advocates view the relaxation as a setback for public health and climate goals, the government argues that the revised rules strike a balance between energy security, economic stability, and a gradual transition to cleaner energy sources.

News by Rahul Yelligetti.