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The states have sought access to the Centre-operated Power System Development Fund and the National Clean Energy Fund to meet the additional expenditure required to install FGDs. “All Private producers are committed to timelines laid out by CEA for installation of FGD, however reluctance of bankers to finance stems from expected delays in regulatory approval of tariff,” Ashok Khurana, director-general, Association of Power Producers, said The state power departments would be wary of any rise in power costs with financial losses of the discoms under the UDAY scheme stood at Rs 28,369 crore at the end of FY19, up 88.6% year-on-year. The sector is hardly in the best of health, with plants facing low capacity utilisation due to less-than-expected growth in demand.

Finance is the biggest hurdle in this exercise, especially at state-owned and private plants. The installation of FGDs necessitates a rise of Rs 0.62-0.93/unit in power tariffs. “Given the outcry on high pollution levels, the government and regulatory bodies need to ensure strict compliance through a mission mode,” Mohapatra added. “With pending dues of generators, stress in the sector and expectations that deadlines may be relaxed or norms tweaked, urgency to comply is missing,” said Sambitosh Mohapatra, partner, power and utilities at PwC India. Coal-based power plants have been directed by the Central Pollution Control Board to meet the revised norms by 2022.Īs on September 30, tenders for FGD of 99,200 MW capacity were floated and contracts awarded for another 35,200 MW. In fact, the initial two-year deadline of December 2015 for compliance with emission norms had already been missed by the industry. It requires an estimated Rs 27 lakh-45 lakh per MW for FSG installation, so the total cost of first phase of 14,000 MW is between Rs 3780 crore-Rs 6300 crore. Emails inquiring about the development on this front sent to the state-owned power generating companies have remained unanswered for over a couple of days.Īccording to the plan, another 26,330-MW power capacities are required to instal the flue gas de-sulphurisation (FGD) units in 2020, 64,268 MW in 2021 and 64,055 MW in 2022. However, it is learnt that CLP India’s 1,320 MW Jhajjar Power plant is the only station to have commissioned such equipment among these 11 units so far.

Their upgrade was expected to play a role in controlling the high pollution levels in the National Capital Region.

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