This study aims to find the best policy, which would induce the Indian coal-based power plants to abate particulate emissions in the most cost effective way. The empirical analysis of the power plants suggests that replacing the age-old boilers is of utmost importance along with switching to low-ash albeit expensive coal is cost effective. Installation of pollution control equipment in the form of an ESP or a baghouse depends on the target emission level. In the Indian scenario and ash tax can be considered the best policy instrument along with an emission tax to induce the power plants to adopt the cost efficient technology.