Centre eases FGD norms for power plants, electricity costs to come down

THE Ministry of Environment, Forest and Climate Change has relaxed the requirement for mandatory installation of flue gas desulphurisation (FGD) systems at most coal-based thermal power plants, marking a move towards differentiated compliance based on proximity to urban populations and the sulphur content of the coal used.

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The new framework, finalised after extensive deliberations and multiple independent studies, will restrict FGD mandates only to plants located within 10 kilometres of cities with a population exceeding one million.

Plants in critically polluted areas or non-attainment cities will 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. That benefit, say experts, will ultimately flow to consumers. In a high-demand, cost-sensitive economy, the impact could be significant, helping state discoms contain tariffs and reducing the subsidy burden on governments.