Govt revises emission timelines for TPPs, enforces graded penalties for non-compliance

Time of India

11 hours ago

New Delhi: Thermal power plants will now have to pay for every unit of electricity generated in violation of sulphur dioxide (SO₂) emission norms, with penalties ranging up to ₹0.40 per unit, as the Union Environment Ministry revised deadlines for installing pollution control systems while enforcing financial disincentives for non-compliance.
According to the Environment (Protection) Fourth Amendment Rules, 2025, notified by the
Ministry of Environment
, Forest and Climate Change, the revised compliance dates range from December 2027 to December 2029, depending on the location of the power plant. The new norms apply to coal and lignite-based thermal power stations operating under three geographical categories — A, B, and C.
Revised deadlines and categorisation
Plants in Category A — those within 10 km of the National Capital Region (NCR) or cities with over 10 lakh population — are required to comply with SO₂ emission norms by December 31, 2027. Plants commissioned after this date must meet the emission standards before starting operations.
Category B covers plants located near critically polluted areas or non-attainment cities. These plants can seek review from the Ministry within six months and, if approved, are required to comply by December 31, 2028. If they don't apply for review, the same compliance deadline will apply.
Category C plants, located in areas outside Categories A and B, are exempted from installing sulphur dioxide
emission control systems
, but must adhere to stack height requirements under the 1990 rules by December 31, 2029.
Penalty structure for non-compliance
The Ministry has for the first time introduced penalties for operating non-compliant units. If emission norms are not met, the power plants will be liable to pay ₹0.20 per unit of electricity generated for the first 180 days of default, ₹0.30 per unit for delays between 181 and 365 days, and ₹0.40 per unit for delay beyond one year.
These penalties will apply to plants continuing operations despite missing deadlines, as well as to those that were granted exemption from norms on grounds of retirement but failed to retire.
Context and background
The Ministry had first introduced SO₂ norms in 2015, requiring all thermal plants to install emission control systems by 2017. Since then, the deadlines have been extended several times — in 2017, 2021, and 2022 — due to industry requests and supply chain delays.
Power producers had raised concerns over the unavailability of flue gas desulphurisation (FGD) units, increase in auxiliary power consumption, and high costs of installation, which would eventually be passed on to consumers. Some had also cited lack of water availability and constraints at older stations.
The
Central Pollution Control Board
(CPCB) will oversee implementation through a multi-agency task force comprising representatives from the Ministry of Power and the Central Electricity Authority. It will also be responsible for categorising power stations, evaluating exemption requests, and monitoring compliance.
Exemption clause and data integration
In addition to emissions regulations, the Ministry of Petroleum and Natural Gas has proposed open access to the
National Data Repository
(NDR) at zero charge for startups, academic institutions, and MSMEs. The move is intended to promote innovation and accessibility in exploration and production data.
The draft Petroleum and Natural Gas Rules, 2025, which are currently under consultation, also propose stabilisation clauses to protect lessees from future fiscal changes, and mandate third-party access to underutilised pipeline infrastructure.