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Implications of Exempting 78% of Thermal Power Plants

Context

  • The Union Environment Ministry has exempted 78% of India’s 600 thermal power plant (TPP) units from installing Flue Gas Desulphurisation (FGD) systems.
  • FGD systems are critical for reducing sulphur dioxide (SO₂) emissions, a precursor to acid rain and particulate matter (PM2.5) pollution.
  • Only about 11% of thermal plants — those in high-density/population areas — are still mandated to install FGD systems.

Relevance : GS-3 – Environment and Energy; air pollution, public health, and emission standards.

What are FGDs and Why Do They Matter?

FeatureDescription
PurposeReduces SO₂ emissions by up to 95% from coal combustion
MechanismUses limestone slurry or seawater to scrub sulphur oxides from flue gas
RelevanceSO₂ contributes to PM2.5 formation, acid rain, respiratory and cardiac diseases
Global PracticeMandatory in China, US, EU for all coal-fired plants since early 2000s

India’s Thermal Power Pollution Profile

IndicatorValue
Total TPPs~180 (comprising 600+ units)
Share in electricity~72% of total generation (as of 2025)
Share in SO₂ emissions~51% of all industrial SO₂
Plants with FGD installedOnly 8% (mostly NTPC-run)
Exempted units post-policy~468 units (78%)

Key Policy Update (July 2025)

CategoryCriteriaFGD Mandate
Category AWithin 10 km of NCR or Tier-1 citiesMandatory
Category BWithin 10 km of Critically Polluted Areas (CPAs) or Non-Attainment Cities (NACs)Case-by-case
Category CAll othersExempted

Result: Only ~11% (Category A) will remain under FGD norms.

Basis for Exemption: What Experts Said

The government relied on recommendations of a scientific panel led by Principal Scientific Adviser Ajay Sood:

  • Claimed Indian coal has low sulphur content
  • Found no major SO₂ difference in areas with or without FGDs
  • Argued that sulphates suppress warming, so removing SO₂ may increase net radiative forcing

Counterarguments by Public Health & Environmental Experts

ArgumentResponse
“Indian coal is low in sulphur”But still emits enough SO₂ to drive PM2.5 in hotspots
“FGDs don’t improve local air quality”Air quality impact depends on meteorology; long-range transport of SO₂ is well documented
“Sulphates cool the planet”True — but co-benefits of SO₂ do not outweigh public health costs (respiratory illness, strokes)
“FGDs are costly”Health costs of SO₂ are 5x higher than installation costs (per WHO/ICMR studies)

Global Standards vs India’s Position

Implications of the Decision

  • Environmental:
  • Higher SO₂ emissions → elevated secondary particulate matter (sulphates)
  • Weakens India’s commitment to air quality improvement under NCAP
  • Potential rise in acid rain impacting crops, soil, monuments
  • Public Health:
  • Risk of increased respiratory and cardiovascular illnesses
  • Higher disease burden in rural areas near exempted plants
  • Economic:
  • Disincentivises green tech investment in the power sector
  • Short-term relief for discoms & thermal producers, but long-term cost-shifting to health sector
  • Global Commitments:
  • May impact India’s COP pledges on emissions intensity
  • Could weaken diplomatic stance on climate finance and clean tech if domestic credibility erodes

Way Forward: Balancing Power and Pollution

  1. Reprioritise Targeted FGDs: Mandate for plants near dense populations, agricultural belts, and ecological hotspots.
  2. Subsidised Technology Deployment: Viability gap funding for older plants; tie to ESG-linked financing.
  3. Integrated Emissions Tracking: Mandatory online SO₂, NOx, PM reporting on public dashboard.
  4. Health Cost Valuation: Incorporate externalities into tariff-setting by CERC.
  5. Accelerate Renewables: Reduce dependence on coal by scaling solar-wind-battery hybrids.

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