Air pollution levels in India rank among the highest globally, posing significant threats to public health and the economy. In response to this crisis, the government mandated coal-fired power stations to adhere to stricter emissions regulations or face potential closure, initially setting a 2017 deadline for the installation of flue gas desulfurization (FGD) units. However, this deadline has since been extended to 2026.

The document indicated that NITI Aayog recommended that the federal environment and power ministries instruct coal-based power plants to cease placing new orders for desulfurization equipment. Should this proposal be implemented, it could halt tenders worth 960 billion rupees (approximately $11.42 billion) for sulphur-reducing equipment across 80,000 megawatts of coal-fired capacity.

Environmental advocates support stringent emissions reduction regulations for coal-fired power stations, noting that these facilities are responsible for around 80% of industrial sulphur and nitrous oxide emissions in India, which contribute to lung diseases and acid rain.

The document from NITI Aayog references a government study claiming that the data does not indicate that sulphur dioxide (SO2) emissions from India's coal-based power plants are negatively affecting air quality. This assertion contradicts the conclusions of several studies conducted by international organizations and advocacy groups.

A 2019 report from Greenpeace identified India as the largest emitter of sulphur dioxide (SO2) worldwide, primarily due to emissions from coal-fired power plants.