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FGD retrofit mandate
What it is
Flue Gas Desulphurisation equipment removes sulphur dioxide from thermal plant emissions, mandated under 2015 norms with deadlines extended several times. Retrofitting an operating plant is a major capital and outage exercise
Policy has since moved toward a differentiated approach based on plant location and coal sulphur content rather than universal application
Impact on industries
- Large capital outlay per MW on plants that may have limited remaining life, with the cost passed to consumers or absorbed by the generator
- Retrofit requires extended outages, reducing availability and therefore capacity charge recovery during installation
- A substantial order stream for BTG and environmental equipment suppliers, absorbers, pumps and construction contractors
- Differentiated application avoids spending on plants where Indian low-sulphur coal makes the benefit marginal
- Repeated deadline extensions have made compliance planning difficult and rewarded delay over early action