The Central Electricity Regulatory Commission (CERC) has approved hard cost totalling ₹689.61 crore towards installation of emission control systems at NLC Tamil Nadu Power Limited 2x500 MW Thermal Power Station, to meet the Sulphur dioxide (SO2) emission control norms set by the Union Ministry of Environment, Forest and Climate Change.
NLC Tamil Nadu Power is a joint venture between Tangedco and NLC India Limited. The coal-based power plant is located in Thoothukudi and the power is supplied to the Southern states.
Thermal power stations are installing Flue Gas Desulphurisation equipment to comply with the Sulphur dioxide emission norms. NLC Tamil Nadu Power’s unit-1 and unit-2, with a capacity of 500 MW each, were commissioned in June 2015 and August 2015 respectively.
NLC Tamil Nadu Power proposed to install a Wet Flue Gas Desulphurisation (WFGD) system along with an additional chimney and an additional desalination plant of 8.5 MLD capacity to meet the water requirements of the system.
Through a domestic competitive bidding process, the company had awarded the contract to BHEL for implementation of WFGD system and installation of additional chimney, while the contract for setting up the additional desalination plant was given to Tecton.
BHEL’s amended contract price was ₹527.03 crore excluding taxes and duties and ₹621.90 crore, including taxes and duties. For the Chimney, the contract price was ₹72.03 crore excluding taxes and duties and ₹85 crore including taxes and duties.
The contract price of the additional desalination plant was ₹90.55 crore excluding taxes and duties and ₹106.85 crore including taxes and duties.
NLC Tamil Nadu sought approval from CERC for a hard cost of ₹59.91 lakh/MW towards the installation of WFGD and additional chimney and the hard cost of ₹9.06 lakh/MW towards additional desalination plant.
Tangedco and Power Company of Karnataka Limited said NLC Tamil Nadu’s claim is higher than the Central Electricity Authority (CEA) recommended hard cost of ₹45 lakh/MW.
The per MW hard cost suggested for the WFGD system by CEA is indicative in nature and is more than two-three years old. The CEA has already recognised the need for revising the cost recommended by it earlier, CERC said while approving the hard cost.
As per Union Ministry of Environment, Forest and Climate Change notification in 2022, thermal power plants within 10-km radius of Critically Polluted Areas or Non-attainment cities have to comply with the norms by December 2025.
