India's power producers have sought a further extension to cap toxic emissions from their plants, citing lack of bank financing and disruption caused by the coronavirus pandemic, people with knowledge of the matter said.
The Association of Power Producers, a New Delhi-based lobby group for non-state generators, has written to Minister of Power, Raj Kumar Singh, seeking a minimum two-year extension for the installation of emission control equipment, such as sulfur di-oxide, in order to ensure that discussions are not public. This is the second exemption sought by producers who have to apply the procedure in phases until the 2022 deadline.
The appeal for delay represents the fear that the consumption slump may not rebound quickly. Most of India's coal-fired power producers have failed to build the equipment, citing a lack of funding. The national lockdown to control the spread of coronavirus reduced demand for electricity and resulted in a cash tightening of generators, further eroding their creditworthiness.
The lobby group , which includes Adani Power Ltd. and JSW Energy Ltd. among its members, said that while order placements would be disrupted as a result of the pandemic, the biggest challenge, according to the public, was lack of funding. Banks are also wary of financing the equipment, people said. The group requested that the power regulator issue a provisional tariff order to compensate for costs.
The state-run generator NTPC Ltd. has ordered equipment, but has also missed the 2019 deadline for its plants in the outskirts of the national capital.
Meanwhile, the group requested the government to come to the top court to request an extension, so that the plants will not end up breaching the government's order, the people said citing the letter. The installations are being carried out under the supervision of the Supreme Court.
Ashok Khurana, Director General of the Power Producers Association, refused to comment on the message, while the Power Ministry did not respond immediately to an e-mailed request for comments.
In December 2015, the Ministry of the Environment introduced guidelines for capturing water use and emissions of particulate matter, sulfur dioxide, nitrogen oxides, mercury in power plants. The Ministry gave the producers two years to comply with the standards, a time limit that they said was too short. Later, the deadline for phase-in implementation was extended to 2022.
The Ministry's guidance was intended to contain the worsening air pollution in cities in India that posed a threat to human life. India was home to 14 of the 20 most polluted cities in the world until last year. Coal, which contributes to the production of nearly 70% of India 's electricity, is seen as one of the key causes of deadly air in the region.
