In July 2025, the Ministry of Environment and Forests announced a major shift in air pollution regulation by exempting most coal-fired thermal power plants from mandatory installation of flue gas desulphurization (FGD) systems. The change aims to implement a cost-effective, science-backed approach, focusing only on regions with significant air quality concerns.
Key Changes:
- Only 11% of plants near major cities (Category A) must install FGDs by December 2027.
- Another 11% near polluted zones (Category B) may be required to install FGDs by 2028, subject to expert review.
- The remaining 78% (Category C) are now exempt from this mandate.
Why the Change
The government cited declining ambient SO₂ levels, low sulphur content in Indian coal, and minimal health gains from nationwide FGD use. With high costs (~₹1.2 crore per MW), the universal application of FGD technology was deemed economically unsustainable.
Impact:
This new policy prioritizes pollution hotspots, maintaining stricter standards than many developed nations, while ensuring that environmental regulations remain feasible and regionally focused.

