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FGD retrofit mandate

Policy & Regulation · Standards & approvals

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

Industries affected