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India's FGD Rule Relaxation To Cut Electricity Cost By 25-30 Paise Per Unit; Here's How

  • The Indian government has eased sulphur emission rules for most coal-fired power plants by restricting the installation of flue-gas desulphurisation (FGD) systems to plants near cities with a population exceeding one million, expected to reduce electricity costs by 25-30 paise per unit.
  • Plants in critically polluted areas or non-attainment cities will be evaluated case-by-case while 79% of India's thermal power capacity is exempt from mandatory FGD installation.
  • Studies by various institutions found that ambient sulphur dioxide levels in India are within air quality standards, questioning the need for a universal FGD mandate.
  • The relaxed norms are anticipated to lower electricity costs, benefiting consumers and aiding in containing tariffs for state discoms while maintaining focus on environmental protection with a targeted approach.

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