BSES chairman and managing director RV Shahi told The Financial Express on Wednesday that it would install the FGD plant as per the Bombay high court order. "We are working out the most cost effective project proposal for FGD plant," he added.

Mr Shahi, during the BSES annual general meeting held two months ago, had told the shareholders that it would have to investment nearly Rs 250 crore for the installation of FGD plant at Dahanu. The Financial Express last week had broke the story of BSES filing a special leave petition on this issue.

BSES company secretary Ramesh Shenoy, in a press release, said that the company has initiated discussions with technical experts about the technology, process and equipment to be employed. He added that a detailed project report would be drawn up for this purpose. He reiterated that all efforts are being made to select the most cost effective and economical options so as to minimise additional burden on its tariff.

It must be mentioned here that the BSES had challenged the directive of the Dahanu Taluka Environment Protection Authority on the installation of FGD plant in the Bombay high court. The company had petitioned that Indian coal has very low sulphur content and that the emission of sulphur dioxide from the power station is considerably below the norms prescribed. However, the Bombay high court did not admit the BSES plea and ordered the installation of the FGD plant.

Mr Shenoy said that Dahanu power station for the last one year has been using washed coal together with a small proportion of imported coal which again as condition of tender of procurement has a very small percentage of sulphur.