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Power generating firms can pass on cost of retrofitting plants: Power Secretary

23 Nov 2017 Evaluate

Power Secretary Ajay Kumar Bhalla has said that power generating companies will be allowed to pass on the cost of retrofitting coal based-power plant for meeting emission norms. His statement came amid reports that the Power Ministry is going ahead for changes in regulations to allow the same. Besides, he said that the industry has been dragging retrofitting of power plants to reduce emission, citing less clarity on the issue but it was always clear. He also expressed his hopes that the deadline for new emission norms for coal-based power plants would be extended by the Ministry of Environment and Forests.

The cost of retrofitting a power plant ranges from Rs 1-2 crore per megawatt while for new coal-fired plant the cost is pegged at Rs 5 crore per MW. As many as 295 coal-based power plants have got more time of two to four years to meet strict new environment norms which were to be implemented by December 2017. In December 2015, Environment Ministry had unveiled tougher norms relating to consumption of water, particulate matter, SO2, NOx and mercury for coal-based thermal power plants.

Besides, NITI Aayog chief executive officer Amitabh Kant highlighted the issue of 92 GW plants running on high pollution fuels-furnace oil, diesel and pet coke. He also highlighted other issues like stranded assets worth Rs 1.8 lakh crore in gas-based segment alone and India heading towards a situation where stranded power plants would be worth Rs 5 lakh crore. He urged the forum to discuss these contentious issues including poor monitoring of rural and urban feeders, and said that out of 1.2 lakh rural feeders, just 4,000 are being monitored.

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