Investing in Pollution Control: Review of ERC Policies and Procedures

Undertaken By: Centre for Science and Environment,    Recent Publication: 2019

In 2015, the Indian government revised its emission norms for the power sector. In order to encourage compliance, the Ministry of Power issued directions in 2018 that the new environmental norms of 2015 qualify as a “change in law” event. This means that investments in pollution control technologies to meet the 2015 norms will be covered by an increase in electricity tariff. It was expected that more tariff revision petitions would be filed by coal-based power plants post this move. However, it is observed that the rate of petitions being filed by the thermal power plants is much slower than expected- indicating a delay in progress towards achieving the norms. This report highlights the need to understand the issues leading to the delays and provides recommendations to improve progress.