Business

Power industry seeks govt support for extending FGD deadline

New Delhi, July 7 (IANS) The power committee of industry body FICCI has sought the government's help for installation of Flue Gas Desulphurization (FGD) at operational Independent Power Producers (IPP) and Captive Power Producers (CPP).

In a letter to the Principal Adviser in the Prime Minister Office, P.K. Sinha, the FICCI Power Committee noted the deadline for CPPs to comply with the Environment Ministry notification wherein thermal power plants are required to meet new emission standards for Sulphur Dioxide and Nitrogen Oxide was June 30, 2020 and they require immediate relief.

Other power producers have to comply with the norms by December 2022.

The letter had highlighted that as the entire process may take more than 30 months to complete, other proper producers may also face a challenge to meet the deadline.

Apart from an extension of the June 30 deadline for CPPs and their exemption from adverse action for non-compliance within the timeline, the industry body has also sought setting up of a government committee to review the timelines for FGD implementation, assessment of the requirement and the existing bottlenecks.

“This committee may, in a time-bound manner, take inputs from stakeholders, including IPPs, CPPs, CPSUs, states, regulators, financial institutions and others, and issue the necessary directions for speedy execution,” said the letter by Vipul Tuli, Chairman, FICCI Power Committee.

Tuli, who is MD of Sembcorp Energy India, wrote that the Central Electricity Regulatory Commission (CERC) may be directed to issue provisional tariff for power plants implementing FGDs and where commission has approved change in law under the long-term PPAs.

“A mechanism for cost recovery may be implemented for power plants selling power in power exchange or under short-term contracts through bidding under DEEP along with extension in time for installation of FGD,” the letter said.

The FICCI Power Committee noted that that about 30 months are required to achieve commissioning of FGD after having regulatory and financing clarity.

The data compiled by Central Electricity Authority (CEA) for all the power plants — central, state and Independent Power Producers (IPPs) — shows that most of the plants would not be able to meet the deadline despite advance efforts made by many, if not most of them, it said.

It noted that in this context the FGD sourcing and supply capacity becomes a critical issue.

Pointing out that major suppliers of FGD equipment are from outside India, it said that the Ministry of Power (MoP) order requiring prior approval of import of equipment from certain countries presents an opportunity to manufacture in India and contribute to the ‘Atmanirbhar Bharat' objective and also create additional jobs which in the current scenario is welcome.

“However, as a result, it would take time for the Indian manufacturers to ramp up capacity, as well as for IPPs and CPPs to redo the process of tendering and supplier finalization,” the FICCI panel said.

–IANS

rrb/sn/tsb

Back to top button