- 26 Dec 2024
- ICICI Securities
GOVERNMENT IS REASSESSING IT'S INITIATIVE THAT MANDATES COAL-FIRED POWER PLANTS
News: Based on the findings of the study by CSIR - Neeri, Government is reassessing it's initiative that mandates coal-fired power plants to install flue gas desulphurisation (FGD) systems to reduce sulphur emmisions. Due to the high costs associated with foreign technology and unavailability of manpower, of 540 power stations required to implement FGD, only 8% have implemented FGDs. With the sulphur content at the Indian power plants at only 0.5% vs 0.5%-5% globally there is no advantage in installing FGD at Indian power plants. The study said coals high ash content was a bigger problem for power plants. The officials are considering deployment of locally manufactured electrostatic precipitators, which remove fine particles like dust and smoke from emissions. These cost approximately one-fifth of FGD systems.
Views: Removing installation of FGD will reduce costs to install a coal based power plant and will benefit power generation Companies such as NTPC, JSW Energy, Tata Power. The cost for installing FGD per MW is ~₹1.25 - ₹2 crore. However this is negative for capital goods players like L&T, GE Power, Thermax, BHEL, ABB India, Techno Electric that supply FGD to power generation companies.
Impact: Negative