Environment Protection Rules Amended in 2025: Cooling Tower Exemptions Explained

Introduction: A Shift in Regulatory Flexibility

On 3rd July 2025, the Government of India introduced the Environment (Protection) Third Amendment Rules, 2025, through a notification (G.S.R. 446(E)) published in the Gazette of India. This amendment introduces a critical clause under Schedule-I of the Environment (Protection) Rules, 1986, allowing exemption of thermal power plants from mandatory cooling tower installations, subject to certain conditions.

This move aims to offer regulatory flexibility in specific scenarios while still maintaining environmental safeguards.

1. Legal Authority and Notification History

The amendment is made under:

Section 6 and Section 25 of the Environment (Protection) Act, 1986

The draft of this amendment was published earlier in G.S.R. 121(E), dated 7th February 2025, and open for public feedback for 60 days. After reviewing suggestions and objections from various stakeholders, the final version was notified on 3rd July 2025.

2. Key Amendment to Schedule-I

The central change appears in Schedule-I, against serial number 5A, column 4, where a new proviso has been inserted after item II:

“Provided that the Ministry may, in consultation with the Central Electricity Authority and the Central Pollution Control Board, for reasons to be recorded in writing, by an order grant exemption to thermal power plants from installation of cooling towers.”

This means thermal power plants are not automatically exempt, but they can request exemption with proper justification and formal evaluation by:

Ministry of Environment, Forest and Climate Change (MoEFCC)
Central Electricity Authority (CEA)
Central Pollution Control Board (CPCB)

3. Purpose Behind the Amendment

Thermal power plants often require large-scale water for cooling purposes, typically managed through cooling towers. However, in some cases:

Climatic conditions
Technological feasibility
Infrastructure constraints
Water availability issues

…make cooling towers non-viable or less efficient. Recognizing this, the amendment provides a formal mechanism for case-by-case exemptions, ensuring that decisions are transparent and documented.

4. Who Can Apply for Exemption?

Eligible entities include:

Thermal power plants, both existing and new
Plants facing unique technical or geographic challenges
Units operating under public-private partnerships or government-led projects

However, all exemption requests must:

Be formally submitted
Include technical reasoning
Demonstrate alternative environmental safeguards

5. Process for Seeking Exemption

To seek exemption from cooling tower installation:

Submit a formal application to the Ministry of Environment.
Include:
- Project details
- Technical justifications
- Environmental management plan
The Ministry will consult:
- CEA for power sector alignment
- CPCB for pollution impact assessment
If approved:
- An order with written reasons will be issued
- The exemption will be project-specific and conditional

6. Impact on Environmental Management

This amendment provides a balance between regulatory control and practical viability. It promotes:

Efficient water usage
Customized environmental management
Reduced compliance burden for eligible projects
Encouragement for innovative cooling technologies

It also reinforces that environmental regulations can be dynamic and responsive, provided proper oversight and expert consultation are ensured.

Conclusion: A Step Toward Adaptive Regulation

The Environment (Protection) Third Amendment Rules, 2025, reflect India’s evolving approach to environmental governance. By allowing thermal power plants to seek cooling tower exemptions—with checks and balances—MoEFCC is promoting efficiency, accountability, and technical innovation.

For developers, consultants, and plant operators, this amendment provides new flexibility. However, it also emphasizes the need for thorough documentation and collaboration with regulatory authorities.

Download: Environment Protection Rules Amendment: Cooling Exemption