Extended Producer Responsibility (EPR) Framework and Thermal Power Plant Regulatory Changes in India: Environmental Law Developments

Introduction

India’s environmental regulatory landscape has witnessed significant transformations in recent years, particularly with the introduction of robust Extended Producer Responsibility (EPR) frameworks and evolving regulations for thermal power plants. The Environment Protection (Extended Producer Responsibility) Rules, 2024, represent a paradigm shift in waste management policy, while concurrent developments in thermal power plant regulations reflect the government’s attempt to balance environmental protection with energy security concerns [1]. These developments mark a critical juncture in India’s environmental governance, establishing new accountability mechanisms for producers while addressing practical challenges faced by the power sector.

The regulatory framework encompassing these changes draws its authority from the Environment (Protection) Act, 1986, which provides the foundational legal basis for environmental rule-making in India. Under Section 3 of the Environment (Protection) Act, 1986, the central government possesses wide-ranging powers to take measures for protecting and improving environmental quality [2]. This statutory authority has enabled the Ministry of Environment, Forest and Climate Change (MoEFCC) to introduce sweeping changes in both waste management and pollution control domains.

Extended Producer Responsibility: Legal Framework and Implementation

Constitutional and Statutory Basis

The Extended Producer Responsibility (EPR) framework in India derives its constitutional legitimacy from Article 48-A of the Constitution, which mandates the state to protect and improve the environment. The Environment (Protection) Act, 1986, enacted under Article 253 read with Entry 13 of List I of the Seventh Schedule, empowers the central government to frame rules for environmental protection [3]. The Supreme Court of India, in M.C. Mehta v. Union of India (1987) 1 SCC 395, established the principle that environmental protection is a fundamental duty of both the state and citizens, providing judicial backing for stringent environmental regulations.

The EPR concept was first introduced in India through the e-Waste (Management and Handling) Rules, 2011, which recognized producers’ responsibility for managing electronic waste [4]. This foundational framework was subsequently expanded to cover plastic waste through the Plastic Waste Management Rules, 2016, and has now evolved into the Environment Protection (Extended Producer Responsibility) Rules, 2024.

The Environment Protection (Extended Producer Responsibility) Rules, 2024

The Environment Protection (Extended Producer Responsibility) Rules, 2024, notified under the Environment (Protection) Act, 1986, establish a mandatory framework requiring Producers, Importers, and Brand Owners (PIBOs) to take responsibility for the entire lifecycle of their products. Rule 3 of the 2024 Rules defines EPR as “a policy approach in which a producer’s responsibility for a product is extended to the post-consumer stage of a product’s life cycle” [5].

The Rules impose ambitious recycling targets on PIBOs. Under Rule 6, producers must ensure that 70% of waste generated from their products is recycled or reused by 2026-27, with this target increasing to 100% by 2028-29 [6]. This progressive target structure represents a significant escalation from previous waste management requirements and reflects the government’s commitment to achieving circular economy objectives.

Rule 4 establishes the scope of application, covering packaging materials made of paper, metal, glass, and plastic, as well as sanitary products. The Rules mandate that PIBOs must obtain EPR authorization from the Central Pollution Control Board (CPCB) or State Pollution Control Boards (SPCBs) before commencing operations. The authorization process, detailed in Rule 7, requires producers to submit detailed waste management plans and demonstrate their capacity to meet prescribed targets.

Regulatory Mechanisms and Compliance Requirements

The Extended Producer Responsibility (EPR) framework operates through a credit-based system administered by the Centralized Extended Producer Responsibility Portal for Plastic Packaging, managed by the CPCB [7]. Under this system, producers can fulfill their obligations through direct collection and recycling or by purchasing EPR credits from recyclers. Rule 9 mandates that all transactions must be recorded on the centralized portal, ensuring transparency and accountability in the system.

The penalty provisions under Rule 15 establish strict consequences for non-compliance. Violations can result in closure of operations, cancellation of authorization, and financial penalties up to Rs. 1 crore. The Rules also provide for environmental compensation, calculated based on the environmental damage caused by non-compliance.

State governments play a crucial role in implementation through their respective SPCBs. Rule 12 empowers state authorities to monitor compliance, conduct inspections, and take enforcement action against violators. This decentralized approach ensures that implementation can be tailored to local conditions while maintaining national standards.

Thermal Power Plant Regulations: Recent Developments and Relaxations

Emission Norms and Compliance Timeline Extensions

Thermal power plants in India operate under emission norms prescribed under the Environment (Protection) Rules, 1986, as amended from time to time. The Ministry of Environment, Forest and Climate Change has periodically revised these norms to align with international standards and address air pollution concerns. However, implementation has faced significant challenges, leading to multiple deadline extensions.

In 2015, the MoEFCC notified revised emission norms for thermal power plants, setting stricter limits for particulate matter, sulfur dioxide (SO₂), and nitrogen oxides (NOₓ). The original compliance deadline of December 2017 has been extended multiple times, with the most recent extension granted in early 2025, pushing the deadline to 2028 for older plants [8].

The National Green Tribunal, in Paryavaran Suraksha Samiti v. Union of India, OA No. 25/2014, had earlier directed strict compliance with emission norms. However, the practical challenges faced by power utilities, including financial constraints and technical difficulties in retrofitting older plants, have necessitated a more flexible approach from regulators.

Flue Gas Desulfurization (FGD) Norms and Recent Relaxations

The requirement for installing Flue Gas Desulfurization (FGD) systems has been a contentious issue in the thermal power sector. The revised norms mandate that all thermal power plants install FGD systems to reduce SO₂ emissions. However, recent regulatory developments have introduced flexibility in implementation.

The Ministry of Power, in consultation with the MoEFCC, announced relaxations in FGD norms in July 2025, allowing plants to adopt alternative compliance mechanisms based on site-specific conditions and air quality parameters [9]. This recalibration of norms is expected to reduce electricity costs by 25-30 paise per unit, providing relief to both consumers and state electricity boards.

The relaxations are not uniform but are based on scientific assessment of ambient air quality and the specific contribution of individual plants to regional pollution levels. Plants located in areas with better air quality or those with lower capacity utilization factors may be eligible for modified compliance requirements.

Renewable Generation Obligation for Thermal Plants

A significant development in thermal power plant regulation is the introduction of Renewable Generation Obligation (RGO) for new plants. The Ministry of Power, through amendments to the Electricity Rules, 2005, has mandated that new coal or lignite-based thermal power plants must generate a portion of their total energy from renewable sources.

Under the RGO framework, thermal power plants with commercial operation dates after April 1, 2023, must meet specific renewable energy generation targets. Plants with COD between April 1, 2023, and March 31, 2025, were required to comply by April 1, 2025, while plants commissioned after April 1, 2025, must comply from their COD [10].

This regulatory innovation reflects the government’s strategy to integrate renewable energy into the traditional thermal power framework, facilitating a gradual transition toward cleaner energy generation while maintaining grid stability and energy security.

Judicial Interpretations and Case Law Developments

Supreme Court Precedents on Environmental Compliance

The Supreme Court of India has consistently emphasized strict environmental compliance in the power sector. In Vellore Citizens Welfare Forum v. Union of India (1996) 5 SCC 647, the Court established the “polluter pays” principle as a fundamental aspect of environmental law. This principle underlies both EPR frameworks and thermal power plant regulations, requiring polluters to bear the cost of environmental remediation.

In T.N. Godavarman Thirumulkpad v. Union of India (2006) 1 SCC 1, the Supreme Court reinforced the precautionary principle, mandating that environmental protection measures should not be delayed on grounds of scientific uncertainty. This precedent has been instrumental in justifying stringent EPR requirements despite industry concerns about implementation challenges.

The Court’s decision in Indian Council for Enviro-Legal Action v. Union of India (1996) 3 SCC 212 established the absolute liability principle for environmental damage, making it clear that industries cannot escape liability for environmental harm on grounds of technical impossibility or economic hardship.

National Green Tribunal Decisions

The National Green Tribunal (NGT) has played a pivotal role in shaping environmental compliance requirements. In Centre for Public Interest Litigation v. Union of India, Application No. 41/2012, the NGT directed the implementation of stricter emission norms for thermal power plants and mandated regular monitoring of compliance.

The Tribunal’s order in Social Action for Forest and Environment v. Union of India, OA No. 580/2017, specifically addressed EPR implementation, directing the CPCB to establish robust monitoring mechanisms and ensure effective enforcement of producer responsibility obligations.

Regulatory Authorities and Implementation Mechanisms

Central Pollution Control Board (CPCB) Role

The CPCB serves as the apex regulatory authority for implementing both EPR and thermal power plant regulations. Under the Water (Prevention and Control of Pollution) Act, 1974, and the Air (Prevention and Control of Pollution) Act, 1981, the CPCB possesses comprehensive powers to monitor, regulate, and enforce environmental compliance.

The Board’s functions include granting EPR authorizations, operating the centralized EPR portal, conducting compliance audits, and coordinating with state-level authorities. The CPCB’s technical guidelines for EPR implementation provide detailed procedures for registration, target calculation, and credit trading mechanisms.

For thermal power plants, the CPCB maintains the national database of emission monitoring data and conducts regular inspections to ensure compliance with prescribed norms. The Board’s annual reports on environmental compliance provide critical insights into sector-wide performance and identify areas requiring regulatory intervention.

State Pollution Control Boards (SPCBs)

State Pollution Control Boards function as the primary implementing agencies at the state level. Under the delegated authority from central regulations, SPCBs issue consent to establish and consent to operate permissions for industrial facilities, including thermal power plants and waste processing facilities.

The SPCBs’ responsibilities include local monitoring of EPR compliance, collection of environmental compensation, and coordination with municipal authorities for waste management infrastructure development. The effectiveness of EPR implementation largely depends on the capacity and resources of state-level institutions.

Economic Implications and Industry Response

Financial Impact on Producers

The Extended Producer Responsibility (EPR) framework imposes significant compliance costs on producers, importers, and brand owners. Industry estimates suggest that EPR compliance costs range from 1-3% of product value, depending on the product category and packaging materials used. Large multinational companies have generally adapted to EPR requirements more readily than small and medium enterprises, creating potential market consolidation effects.

The credit trading system provides flexibility but also introduces market dynamics that can affect compliance costs. EPR credit prices fluctuate based on supply and demand, with recycling capacity constraints driving up costs during peak compliance periods.

Power Sector Financial Implications

The relaxation of FGD norms for thermal power plants is expected to provide financial relief to the power sector, which has been grappling with stressed assets and high non-performing loans. The estimated reduction in electricity costs by 25-30 paise per unit could improve the financial viability of thermal power plants and reduce the burden on state electricity boards.

However, the introduction of RGO requirements adds new compliance costs for thermal power plants, requiring investment in renewable energy infrastructure or purchase of renewable energy credits. This dual regulatory approach reflects the government’s balancing act between immediate financial relief and long-term environmental objectives.

International Comparisons and Best Practices

Global EPR Models

India’s EPR framework draws inspiration from international models, particularly the European Union’s Extended Producer Responsibility Directive and similar frameworks in countries like Germany, Japan, and Canada. However, the Indian model incorporates unique features such as centralized credit trading and progressive target structures that reflect local conditions and development priorities.

The integration of digital platforms for monitoring and compliance represents an innovative approach that could serve as a model for other developing countries. The real-time tracking of waste flows and recycling activities through the centralized portal enhances transparency and reduces opportunities for non-compliance.

Thermal Power Plant Standards

International best practices in thermal power plant regulation emphasize technology-neutral approaches and performance-based standards rather than prescriptive technology requirements. India’s recent shift toward flexible compliance mechanisms aligns with this global trend while maintaining environmental protection objectives.

Future Outlook and Policy Recommendations

EPR Framework Evolution

The Extended Producer Responsibility (EPR) framework is likely to expand to cover additional product categories, including textiles, pharmaceuticals, and construction materials. The success of current implementation will determine the pace and scope of such expansion. Enhanced integration with municipal solid waste management systems and improved recycling infrastructure development are critical for achieving long-term objectives.

Digital innovation, including blockchain-based tracking systems and artificial intelligence for waste stream optimization, could further enhance EPR effectiveness. The development of standardized methodologies for life cycle assessment and environmental impact quantification will support evidence-based policy refinements.

Thermal Power Plant Regulations

The future of thermal power plant regulation will likely involve greater integration of renewable energy requirements, stricter efficiency standards, and enhanced focus on water conservation. The introduction of carbon pricing mechanisms could fundamentally alter the regulatory landscape and accelerate the transition toward cleaner technologies.

Technology developments in carbon capture and storage, advanced emission control systems, and hybrid renewable-thermal systems will influence regulatory approaches. Policymakers must balance environmental objectives with energy security concerns and economic realities.

Conclusion

The recent developments in Extended Producer Responsibility (EPR) frameworks and thermal power plant regulations represent a significant evolution in India’s environmental governance. The Environment Protection (Extended Producer Responsibility) Rules, 2024, establish a robust foundation for circular economy implementation, while regulatory adjustments in the thermal power sector reflect pragmatic approaches to environmental compliance.

The success of these regulatory innovations depends on effective implementation, adequate institutional capacity, and continued stakeholder engagement. The balance between environmental protection and economic development remains delicate, requiring continuous monitoring, evaluation, and adaptive management approaches.

As India pursues its climate commitments and sustainable development objectives, these regulatory frameworks will play a crucial role in shaping industrial behavior and environmental outcomes. The integration of digital technologies, market-based mechanisms, and performance-based standards represents a modern approach to environmental regulation that could serve as a model for other developing nations.

The legal foundation provided by constitutional mandates, statutory authority, and judicial precedents ensures the durability of these regulatory frameworks. However, their ultimate success will depend on effective enforcement, industry compliance, and the development of supporting infrastructure and institutions.

References

[1] Ministry of Environment, Forest and Climate Change. (2024). Environment Protection (Extended Producer Responsibility) Rules, 2024. Government of India. Available at: https://eprplastic.cpcb.gov.in/ 

[2] Environment (Protection) Act, 1986, Section 3. The Gazette of India. Available at: https://www.indiacode.nic.in/ 

[3] The Constitution of India, Article 48-A and Article 253. Available at: https://www.constitutionofindia.net/ 

[4] Ministry of Environment and Forests. (2011). E-waste (Management and Handling) Rules, 2011. Available at: https://testbook.com/question-answer/in-india-extended-producer-responsibility3–5f34ea35d042f30d092413f4 

[5] Recykal. (2025). EPR Registration Guide in India 2025: Compliance, Process, and Sustainability. Available at: https://recykal.com/blog/epr-registration-guide-in-india-all-you-need-to-know-in-2025/ 

[6] Mondaq. (2024). Environment Protection (Extended Producer Responsibility) Rules, 2024: Paving The Way For Sustainable Waste Management. Available at: https://www.mondaq.com/india/waste-management/1558154/ 

[7] Central Pollution Control Board. Centralized EPR Portal for Plastic Packaging. Available at: https://eprplastic.cpcb.gov.in/ 

[8] Down To Earth. (2025). India Extends SO₂ Compliance Deadline for Thermal Power Plants Yet Again. Available at: https://www.downtoearth.org.in/pollution/thermal-power-plants-get-another-extension-for-so-compliance-norms-its-time-we-reassess-ongoing-delays 

[9] Construction World. (2025). India Relaxes FGD Norms for Thermal Power Plants. Available at: https://www.constructionworld.in/energy-infrastructure/power-and-renewable-energy/india-relaxes-fgd-norms-for-thermal-power-plants/76381