The Punjab government might face penalty nearing ₹400 crore per year for its failure to comply with timely installation of Flue Gas Desulphurisation (FGD) systems in thermal power plants (TPPs) across the state.
Also, an additional fine of ₹1,026 crore will be imposed by National Green Tribunal (NGT) for non-compliance with the environmental laws, further exacerbating environmental and financial challenges faced by the state.
The FGD systems — to control sulphur dioxide (SO₂) emissions — was mandated by the Ministry of environment, forest and climate change (MoEF&CC) across India in 2015. The FGD systems are crucial to reduce sulphur dioxide emissions from fossil-fuelled power stations.
Initially set for completion of the said systems by 2017, the deadline for installation is learnt to have been extended multiple times by the central government.
The latest and final extension is set to expire in December 2026. Meanwhile, the Supreme Court has ruled that no further extensions will be granted.
Vinod Gupta, an expert of power sector, explained that installing these systems will take over 30 months, implying that any further delay might make it impossible to meet the 2026 deadline. He informed that Ropar thermal plant, which falls under category B, has to install the FGD by December 31, 2025, and the remaining, which falls under category C, need to comply with the directives by December 31, 2026.
Despite the looming deadline, the Punjab government has appeared to have not been mindful of public exchequer and has not made any substantial progress in this regard.
As many as five thermal power plants in the state — Rajpura Thermal Power Plant, Talwandi Sabo Power Project in Mansa, Guru Gobind Singh Super Thermal Power Plant in Ropar, Guru Hargobind Thermal Plant in Lehra Mohabbat, and Guru Amardas Power Power Plant in Goindwal — are at risk.
Failure to comply with the FGD installation timeline could result in substantial penalties. And sans immediate action, Punjab is likely to miss the deadline, further worsening the challenges of the state.
In June 2024, the Union power ministry took serious note of the delays, with the Cabinet Secretary directing all TPPs within 300 km of Delhi-NCR to expedite FGD installation and comply with SO₂ norms as per the MoEF&CC guidelines.
Despite these warnings, sources in the state government and Punjab State Power Corporation Limited (PSPCL) have not indicated any concrete plans to meet the critical environmental standards.
PSPCL’s lackadaisical approach not only threatens its compliance with national environmental regulations but also risks severe penalties that could further strain its resources.
When asked about the delay in installing FGD systems in TPPs, a senior official of PSPCL, on condition of anonymity, said “Of course, we couldn’t make any development in this regard, but we will look into the matter.”
Paramjeet Singh, director (generation), PSPCL could not be contacted despite repeated attempts.
Meanwhile, PSPCL officials said that they would have to spend nearly ₹150- ₹200 crores on each thermal plant to install FGD systems.