Analysis of Justifications for Flue Gas Desulfurization (FGD) Deadline Extension for Major Indian Power Producers

Abstract India's 2015 environmental norms mandated stringent limits on Sulphur Dioxide (SO₂) emissions from coal-fired thermal power plants (TPPs), necessitating the installation of Flue Gas Desulfurization (FGD) systems. Despite multiple deadline extensions, widespread non-compliance persists. This report analyses the most recent phase of deadline extensions (post-2022) focusing on three of India's largest private power producers: Adani Power, Reliance Power, and JSW Energy. By examining the justifications cited in their official communications and representations to the Ministry of Power (MoP) and the Ministry of Environment, Forest and Climate Change (MoEFCC), this report assesses the validity and implications of their arguments. Key justifications analysed include force majeure events (COVID-19, geopolitical conflicts), supply chain disruptions, technical complexities, and financial constraints. The analysis reveals that while some arguments hold partial merit, particularly concerning the pandemic's initial impact, they often do not fully account for the prolonged multi-year delays. The findings suggest a pattern of regulatory deferment that undermines environmental objectives and public health, while highlighting systemic challenges in India's power sector transition. The report concludes that a firmer regulatory approach, coupled with a transparent and realistic implementation roadmap, is imperative to achieve compliance.