India’s coal-fired power plants shun clean tech, with a little help from the government
Repeated extensions of the deadline for installing equipment to control toxic sulphur dioxide emissions point to a government that is unable to face down a strong fossil fuel lobby. In Maharashtra’s Chandrapur district, the cooling towers of the state’s largest coal-fired power plant dwarf everything around them. Smoke billows out of giant chimneys as the super critical thermal plant churns out electricity that meets a quarter of the state’s needs. The plant, run by the Maharashtra State Power Generation Company, or Mahagenco, has gained notoriety over the years for flouting emission norms. Locals have long complained of respiratory illnesses and deaths due to the plant's operations. A team of researchers, currently facing a defamation suit from MahaGenco, were able to link 85 premature deaths in Chandrapur and 62 deaths in Nagpur in 2020 alone to emissions from the power plant. In January 2022, the National Green Tribunal imposed an interim fine of Rs 5 crore on the Chandrapur thermal power plant for violating pollution norms. It was found that two of the plant’s five units were emitting nearly twice the sulphur dioxide allowed under limits prescribed by the Ministry of Environment, Forest and Climate Change. The other three were emitting five times more sulphur dioxide than the prescribed limit. The NGT ordered the plant to implement remedial measures within 3 months, barring which it would be penalized Rs 1 crore every month. This included installation of flue gas desulphurisation technology that would scrub sulphur dioxide and fly ash from the exhaust gases before their release. The power plant got away without paying any penalty. MahaGenco moved the Supreme Court, which stayed the NGT order. The matter is still pending before the apex court, and the power plant is yet to install any FGD scrubber systems. The Chandrapur power plant’s case is emblematic of how lax regulations have allowed thermal power producers—a powerful lobby with the likes of Adani Power, Jindal Power, JSW Energy and Vedanta (other than the government itself) as constituents—to get away with pumping toxic sulphur dioxide into India’s already polluted air. The country is the largest emitter of the gas in the world—two-thirds of which comes from burning fossil fuel in power plants. According to the World Health Organization, prolonged exposure to the pollutant can reduce life expectancy, weaken lung function and cause respiratory and cardiovascular diseases. Sulphur dioxide emissions, carried by wind currents, can react with water and come down as acid rain to hurt larger ecosystems. Yet, India has continued to delay implementing norms that would force power plants to install FGD technology that reduces such emissions. As a result, the decades-old technology, which is widely present at power plants across major economies, has largely remained absent from India. A reply by Ashwini Kumar Choubey, minister of state for environment, to the Rajya Sabha during the recent monsoon session of Parliament shows the scale of the problem. Only 23 of India's 600 thermal power plants have installed FGD systems, and only six claim to meet the sulphur dioxide emission limits. According to the Centre for Science and Environment, only 5% of the country’s thermal power capacity is in compliance with sulphur dioxide emission norms. It is hard to make a justification for why power plants are being given so much leeway on installation of a technology that has clear benefits. A June 2022 study done by researchers at the Indian Institute of Technology, Delhi found that FGD reduces sulphur dioxide emissions by 55% in a 60-80 km radius around the plant. Installation of the technology at NTPC's Vindhyachal plant in Madhya Pradesh was found to reduce emissions by 83-85%. These translate into huge savings for the exchequer too—it would have to spend less on public health emergencies arising out of air pollution. “It is the failure of the government in ensuring that pollution control regulations are implemented. They have never been able to penalize or shut down non-complying plants,” says Sunil Dahiya, analyst at the Centre for Research on Energy and Clean Air, who was part of the team that studied the effect of the Chandrapur plant’s emissions. “Instead, non-compliance has been rewarded with extension of deadlines and dilution of norms. That's what the problem is. There is no seriousness from the government or the industry to implement this.” And nothing explains this inaction better than the repeated revision of rules and the apathy of the Central Electricity Authority—the statutory supervisory arm of the power ministry—to the issue. Rinse and repeat India was already late to the party in bringing in norms to govern sulphur dioxide pollution when it first notified emission standards for power plants in December 2015. In contrast, the US started regulating such emissions back in 1990, and now has FGD scrubbers in 83% of its operational coal power fleet. China too, by 2013, had ensured 95% of its plants had the technology installed. Under the 2015 notification, all power plants had to comply with the new norms within two years. When the December 2017 deadline was close, it became clear that most plants would fail to meet it. In fact, right before the deadline, the power ministry submitted a recommendation to the environment ministry to extend it by 2 years for plants in Delhi-NCR region and 5 years for the rest of the country. The environment ministry accepted the recommendation and gave the plants more time to comply. Come 2019 and most power companies had still not installed FGD units at their plants. The Association of Power Producers, a lobby group, approached the Supreme Court in June 2020 seeking yet another extension—this time from 2022 to 2024. The Supreme Court refused to provide any relief and dismissed the application. Still, in March 2021, the environment ministry yet again amended the rules and extended the compliance deadline. It also set up a task force to classify thermal power plants into three categories based on their location and staggered the cutoff for implementation of FGD technology. The three categories are: Category A: plants within a 10-km radius of cities with a million-plus population Category B: plants within a 10-km radius of critically polluted areas Category C: All other plants While category A plants were still required to comply by 2022, those in B and C were given 1 and 2 more years, respectively. The power ministry, on its part, also proposed to levy an environmental compensation for non-compliance beyond the deadlines. But the threat did little to move the needle. Just two months before the expiry of the first of those deadlines, the environment ministry caved again. For a third time, it extended the cutoff to install FGD units. Power plants near populous cities and New Delhi would now have time till December 2024, while those in less polluting regions could complete installation of the technology by December 2026. Plants that did not comply with sulphur dioxide emission norms by 2027-end would be forced to shut down. “The power sector lobby has quite the heft, so it is not a surprise that they were able to successfully push for another extension,” says an official aware of power companies’ representations to the government, requesting anonymity. “This is not something new either. Coal-fired power producers have been lobbying for less stringent norms for a long time.” The CEA, too, has a part to play in the delays. The statutory body sets the technical standards for construction of plants, transmission lines and grid connectivity. And yet, it waited two years after the first notification was issued in 2015 to draft an implementation plan for installation of FGD scrubbers. It finally published the standard technical specifications in 2018, well after the first deadline had passed. Then it further undermined the existing deadlines in a June 2021 report, where it said that an “unworkable time schedule” was creating “unnecessary burden” on power companies. It suggested that power plants in category C be given time till 2035 to adopt new emission standards that were originally proposed in 2015. “That same report even tried to imply that we don't need FGDs at all. There have been all kinds of arguments that have been pushed forward to delay and do away with these norms,” says Dahiya. “CEA has been successful in getting multiple delays, and while they were at it, they suggested impractical timelines such as 2035.” Even with another extension, the picture still looks grim. The analysis by CSE in June found 43% of category A plants are unlikely to meet the December 2024 deadline. That said, there are signs of some action on the compliance front. As of April 2023, bids for FGD unit installation had been awarded for 36.3 gigawatt of power capacity, while bids had been invited for 14.6 GW. Feasibility studies were on for a further 11.49 GW of capacity. Anubha Aggarwal, programme officer at the industrial pollution unit of CSE, says that non-compliance should be dealt with strictly as enough time has already been given to power plants. “Any violation of the norms at this stage should be considered as a deliberate act, signifying unwillingness to adhere to the norms.” That may turn out to be wishful thinking as power companies continue to highlight the challenges, in an attempt to make a case for further delays. Difficulties or excuses? When India extended the deadlines for a third time in 2022, it highlighted “techno-economic” constraints and the COVID-19 pandemic as reasons. The view mirrored that of the Association of Power Producers, which had been batting for an extension on similar grounds for the last 2 years. In July 2020, the lobby group wrote to the Prime Minister's Office seeking more time to complete the process. They said that the pandemic had led to supply disruptions of equipment from China. The group claimed that the industry is dependent on imports for 70-80% of emission-control components. It added that the “growing clamour for boycott of Chinese goods” was another hurdle. Industry body FICCI also put pressure on the government for an extension of the deadline for installation of emission-control equipment. A power industry executive, who asked not to be named, says there are a handful of reasons why movement has been slow on the FGD front. “There is no business case for this, so where is the incentive to install the technology? There is also a cost burden associated with this. It will lead to increased tariffs as the Central Electricity Regulatory Commission has allowed us to recover these costs from the consumers.” There’s more. “Another challenge that these activists don’t talk about is that it takes 2-3 three years to install FGDs. There will have to be planned shutdowns of power plants. With India's electricity needs rising rapidly, and renewable [power] still not contributing enough, can we afford shutting down plants for so long?” he asks. “Countries that have FGDs adopted them over two-three decades, our pace of adoption will still be faster.” But these claims don’t hold up anymore. According to an analysis done by ICRA, the per-megawatt cost of installing an FGD system is less than Rs 0.9 crore. That works out to just a tenth of the per-megawatt cost of setting up a power plant which, according to the power ministry, is Rs 8.34 crore on average. The ICRA analysis was based on the bids awarded for FGD installation by NTPC. Further, the extent of planned shutdowns is exaggerated, says Dahiya. “The construction work takes 18-24 months, but the plants are operational during that period. The synchronization takes about 2-3 months and that is when the plants have to be shut down. NTPC's Vindhyachal plant has clearly shown us the timeline," he explains. “These concerns have already been addressed for the past 7-8 years, but the power industry keeps citing them.” And the challenges on account of pandemic-related disruptions don't make much sense either. “It is unclear how one or two years of the pandemic would contribute to delaying the implementation process by 5-6 years,” says Nivit Yadav, programme director at CSE’s industrial pollution unit. And, finally, the health benefits that flow from installation of the technology counter all cost arguments. “The benefits of installing FGDs outweigh any cost of investment that is required,” says Dahiya. “If you don’t do it, the health damage and the economic cost that comes with it is way higher than whatever you are estimating FGD will cost. Every day that it is delayed, more people are at risk of losing their lives or having a degraded quality of life.” There is thus a clear need to improve stringency around regulation of thermal power plants. Necessary from an energy security perspective, they continue to cause immeasurable damage to public health. Will the government hold its ground when the next deadline approaches, or will we see another extension? Lead image by Rajat Baran/ The Morning Context. Graphics by Ahmed Raza Khan/ The Morning Context.
