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Govt relaxes FGD rules for power plants: to bring down power costs
The Statesman Siliguri
|July 14, 2025
The government has exempted 79 per cent of coal-based power plants from mandatory flue gas desulphurisation (FGD) installation, limiting the requirement to plants near large cities and polluted zones
The requirement for mandatory installation of flue gas desulphurisation (FGD) systems at most coal-based thermal power plants has been relaxed by the Ministry of Environment, Forest and Climate Change.
The new framework, finalised after extensive discussions and several independent studies, will restrict FGD mandates only to plants located within 10 kilometres of cities with a population exceeding one million.
Power plants in critically polluted areas or non-attainment cities would be evaluated on a case-by-case basis.
All other plants - accounting for nearly 79 per cent of India's thermal power capacity - are now exempted from mandatory FGD installation.
Crucially, the relaxed norms are expected to bring down the cost of electricity by 25 to 30 paise per unit.
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