The Central Electricity Regulatory Commission (CERC) has approved a budget of Rs 58.40 lakh/MW or about Rs 876 crore towards installation of emission control systems at Vallur thermal power station in Tamil Nadu. This development wil help enable compliance to the sulphur dioxide (SO2) emission control norms set by the  Ministry of Environment, Forest and Climate Change (MoEFCC).

As per the MoEFCC notification in 2022, thermal power plants located within a 10-km radius of National Capital Region (NCR) or in cities having million plus population (as per 2011 census of India) have to comply with the norms by 31 December, 2024. Thermal power stations are installing flue gas desulphurisation equipment to comply with the sulphur dioxide (SO2) emission norms.

NTPC Tamil Nadu Energy Company (NTECL), a joint venture between and NTPC and Tangedco runs the 3X500 MW Vallur thermal power station.

NTECL had proposed wet flue gas desulphurization (WFGD) technology to meet the revised SO2 norms and awarded the installation project to TATA Projects in 2020. The process for installation of the FGD system is in progress. The installation of the WFGD system is delayed due to COVID-19 and at present, the civil works as well as mechanical & electrical erection work is in progress at VTPS.

The hard costs claimed by NTECL for the WFGD system are higher than the indicative cost of Rs 45 lakh/MW recommended by CEA, but the company has provided reasons such as station located on the sea coast and installation of an additional seawater treatment plant. CERC noted and gave its in-principle approval for the same. 

CEA ,in its letter dated 24 February, 2021 has itself acknowledged that the earlier cost estimation is about three years old, and the cost of FGD installation has increased.