Chennai power plant seeks more time to install emission-cutting equipment

By: |
November 23, 2019 1:15 AM

According to sources, many states had also demanded that the capital expenditure on this account should be passed on as grants and not considered as loans.

According to projected figures, installation of emission-reducing equipment would necessitate a significant rise of Rs 0.62-0.93/unit in power tariffs.According to projected figures, installation of emission-reducing equipment would necessitate a significant rise of Rs 0.62-0.93/unit in power tariffs.

The Tamil Nadu government-owned electricity generating company Tangedco has requested the power ministry to extend deadlines to install emission reducing fuel gas de-sulphurisation (FGD) systems in two units at its North Chennai power plant by another two years.

The additional time has been sought even after the timeline to comply with new power plant emission norms were extended to 2022 after the earlier deadline of December 2015 was missed.

While the company wants to extend the deadline for two of its units at the plant, Tangedco is waiting for the budgetary offer from BHEL for installing the pollution-cutting equipment in the remaining three units.

According to projected figures, installation of emission-reducing equipment would necessitate a significant rise of Rs 0.62-0.93/unit in power tariffs.

As earlier reported by FE, the states had sought access to the Centre-operated Power System Development Fund and the National Clean Energy Fund (NCEF) to meet the additional expenditure required to install FGDs.

According to sources, many states had also demanded that the capital expenditure on this account should be passed on as grants and not considered as loans.

The NCEF was created out of cess on coal produced or imported in FY11, and abolished from July 2017, on account of GST implementation.

The total collection in this regard in FY17 and April-June FY18 was Rs 37,581.7 crore.

According to a recent response by coal minister Pralhad Joshi in the Rajya Sabha, the details of money allocated, released and utilised from NCEF is being collected by the government.

The revised pollution reduction plan envisages installation of FGD units for 166.5 giga-watt (GW) generation capacity and upgrade of electrostatic precipitators for 63.4 GW capacity.

Tenders for FGD have been floated for 99.2 GW capacity and contracts have been awarded for another 35.2 GW.

About 5.1 GW capacity claim to be compliant to suplur dioxide emission norms already.

CLP India’s 1,320 MW Jhajjar Power plant is currently the only generating station to have commissioned FGDs.

According to the power ministry’s action plan, power plants were expected to commence installation work from 2018 and implement the same before 2022.

Motilal Oswal Securities had earlier said the move for clean power would open up a Rs 1.3-lakh-crore opportunity for emission-control equipment providers such as BHEL, L&T and GE Power in the next three years.

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