Power ministry officials met private power producers and top bankers on Monday to discuss the issue of lending for meeting emission compliance. As per the central pollution control board, all thermal power plants need to meet the emission norms prescribed by CPCB by 2022.

India has a total capacity of 1.61 lakh MW which requires Flue Gas Desulphurisation (FGD) technology to reduce sulphur dioxide emission from these thermal power plants. The private players though reached out to the power ministry seeking an extension of the deadline as banks were not willing to lend.

“About 60,000 MW of thermal capacity is from the private sector which needs technology upgradation to meet the deadline to bring down emission. The banks are unwilling to lend as it has many projects that are under stress.”

About 20,000 MW capacity out of 60,000 MW of thermal capacity of the private players do not have a power purchase agreement (PPA), Fuel supply agreement (FSA) or are non-performing assets (NPA).

“The banks have decided to lend the private sector for this technology upgradation which will reduce emission but we have been clear to not lend to companies where necessary contracts are not in place or are part of NPAs,” said a banker part of the meeting.

FGD technology upgradation at all plants will cost the companies roughly between Rs 50-80 lakhs per MW and the increase in the cost of the power plant will be passed on to the consumer. The hike in tariff due to technology upgradation is likely to be in the range of 60-90 paise per unit.

First Published:Oct 22, 2019 5:19 PM IST