The Economics of Clean Air
Coal Plants and Scrubbers
How India set emission limits for coal power plants in 2015, why installing sulphur scrubbers (FGD) was repeatedly delayed, and the 2025 relaxation of the rule.
Coal power plants emit sulphur dioxide, nitrogen oxides and particulates.
2015 standards
- In December 2015, India set new emission limits for coal plants.
- Plants needed flue gas desulphurisation (FGD) units, called scrubbers, to cut sulphur dioxide.
- The original deadline was 2017.
Delays
- Deadlines were extended multiple times.
- By the early 2020s, only a minority of plants had installed FGDs.
- Reasons: costs, supply of equipment and concerns about power tariffs.
2025 relaxation
In July 2025, the government exempted most coal plants from the FGD requirement, except those near large cities or in critically polluted areas, citing studies about sulphur levels. Critics said this weakened pollution control.
Economics
- Scrubbers cost crores per megawatt.
- Costs would raise electricity tariffs slightly.
- Benefits include fewer deaths and illnesses.
Cost-benefit
Many studies found health benefits exceed costs, but the debate continues.
A coal plant near a city was supposed to install a scrubber by 2017. By 2025, it still hadn't, and the requirement was relaxed.
FGD deadlines were delayed for years.
- India set coal plant emission limits in 2015.
- Scrubber (FGD) deadlines were delayed repeatedly.
- In 2025, most plants were exempted.
- Health benefits often exceed costs in studies.
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