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The Hindu
4 hours ago
- Business
- The Hindu
Sulphur-cleaning device in coal plants not necessary: Central scientific committee
A high-powered committee of experts, chaired by Principal Scientific Advisor (PSA) Ajay Sood, has recommended that India do away with a decade-long policy of mandating equipment, called Flu Gas Desulphurisation (FGD) units, in all coal-fired thermal power plants (TPPs), according to documents perused by The Hindu. These FGD units are required to be retro-fitted in TPPs to cut harmful sulphur dioxide (SO2) emissions. While 92% of India's 600 TPPs have not yet installed FGD units, the recommendation would exempt about 80% of them from needing to install such equipment. The limited number of vendors capable of installing such equipment in India, the high installation costs, the potential rise in electricity bills, and disruptions due to the COVID-19 pandemic have been some of the reasons historically cited by the Power Ministry, the overseer of India's TPPs, for plants' inability to adhere to previous deadlines. In theory, the costs of non-compliance could run to crores of rupees in fines, though these have not materialised thanks to deadline extensions. 'FGD not necessary' However, this was the first time that multiple arms of the government congregated to deliberate on whether FGDs were required in the first place. Their verdict draws on three reports by the CSIR-NEERI, the National Institute of Advanced Studies, and the Indian Institute of Technology, Delhi. The lead scientists of these three institutions – each 'supported' by different arms of the government – were at the meeting on April 23, along with representatives from the Office of the PSA, the Union Power Ministry, and the NITI Ayog. They were all largely unanimous that FGD 'was not necessary.' The guiding principles informing the committee's recommendation are that: SO2 levels in ambient air across the country are around 10-20 micrograms/cubic metre, well below India's air quality norms of 80; Indian coal is low in sulphur; SO2 levels in cities near plants with operational FGD units do not differ significantly from those without these units, and all of these were anyway well below permissible levels. The committee opined that concerns about sulphates – a potential by-product when SO2 emissions reach certain atmospheric levels, thus forming particulate matter (PM) – are unfounded. They cited an analysis of 5,792 PM samples across the country, which found 'low elemental sulphur' content (max 8 micrograms/m3 after outlier removal) which was deemed 'insignificant — for considering PM removal as a benefit of FGD.' FGDs may worsen carbon emissions One argument mentioned in the report was that using FGDs might result in additional carbon dioxide emissions and accentuate global warming. 'Installing FGDs in all TPPs by 2030 will increase the Auxiliary Power Consumption (APC) of the TPPs, thereby adding approximately 69 million tons of CO2 emissions to the atmosphere (2025-30) while reducing SO2 emissions by —17 million tons. Adding more long-lived CO2 emissions while removing short-lived SO2 emissions by installing FGDs indiscriminately in all TPPs in India despite the low Sulphur content of Indian coal will enhance global warming.' On the other hand, given that burning coal is India's primary source of electricity, India's annual SO2 emissions has risen from 4,000 kilotonnes in 2010 to 6,000 kilotonnes in 2022. By comparison, Indonesia, a source of imported coal to India has averaged about 2,000 kt in the same period, according to data from the Centre for Research on Energy and Clean Air (CREA), a Helsinki-based think tank. This is when India's emission standards, at 100 micrograms/m3 (thus requiring FGD), is lower than Indonesia's 800. Environment Ministry 'studying' order Those who attended the meeting included the Secretary, Minister of Power and three other senior officials; Secretary, Environment and Forests and two other officials; four officials of the Office of the PSA; representatives of the NITI Ayog, Central Electricity Authority (the power regulator), Central Pollution Control Board, and academicians. A detailed questionnaire to the Power Ministry was unanswered until press time. Tanmay Kumar, Secretary, Environment Ministry, told The Hindu that his Ministry was 'studying' the order. India has 180 coal-fired thermal power plants, each of them with multiple units. The 600 TPPs, depending on their size, age, proximity to densely populous cities, and background pollution levels, were given different timelines by the Environment Ministry to comply with the FGD installation requirements. Deadlines have been shifted three times, with the most recent extension coming on Dec 31, 2024. Major population centres The committee, according to the minutes of the meeting seen by The Hindu, will 'recommend' to the Power and Environment Ministers that only power plants located within a 10-km radius of the National Capital Region and other cities with a million-plus population be required to install FGDs. These are called Category A plants. There are 66 such plants, and only 14 of them have installed FGDs. Currently, all these plants are required to comply by 2027. Plants within a 10-km radius of 'Critically Polluted Cities' or 'Non Attainment Cities', called Category B plants, would be eligible for exemption on a 'case by case' basis, on a joint review by the Central Electricity Authority or Central Pollution Control Board. There are 72 such plants, with only four having installed FGD. These plants currently have a deadline of 2028. The remaining 462 plants all come under Category C, of which 32 have installed FGDs. These plants have been given a 2029 deadline, but the committee has now recommended that Category C plants be exempted completely, along with some units in Categories A and B which were set up at least 20 years ago. 'Will not affect public health' 'The key common point in these studies is that fitment of FGDs in all TPPs in India is not necessary to comply with the NAAQ (National Ambient Air Quality) standards whose compliance is essential to safeguard public health. While all TPPs must comply with the December 2015 stack emission standards for PM pollution and freshwater consumption, the SO2 stack emission standards can be relaxed to ensure that they are in conformance with the NAAQ standards which are notified by CPCB, keeping in mind the human health and other aspects. This way, TPPs may be able to comply with these standards without fitting FGDs. Since the existing NAAQ standards (for ambient SO2) must be complied with, this change will not affect human health in India,' the committee concludes. Currently, State governments or affiliated companies run a majority of the Category A TPPs, whereas private authorities hold the highest share in Categories B and C.
The Hindu
7 hours ago
- Politics
- The Hindu
Central scientific committee says sulphur-cleaning device in most coal plants ‘not necessary'
A high-powered committee of experts, chaired by Principal Scientific Advisor (PSA) Ajay Sood, has recommended that India do away with a decade-long policy of mandating equipment, called Flu Gas Desulphurisation (FGD) units, in all coal-fired thermal power plants (TPPs), according to documents perused by The Hindu. These FGD units are required to be retro-fitted in TPPs to cut harmful sulphur dioxide (SO2) emissions. While 92% of India's 600 TPPs have not yet installed FGD units, the recommendation would exempt about 80% of them from needing to install such equipment. The limited number of vendors capable of installing such equipment in India, the high installation costs, the potential rise in electricity bills, and disruptions due to the COVID-19 pandemic have been some of the reasons historically cited by the Power Ministry, the overseer of India's TPPs, for plants' inability to adhere to previous deadlines. In theory, the costs of non-compliance could run to crores of rupees in fines, though these have not materialised thanks to deadline extensions. 'FGD not necessary' However, this was the first time that multiple arms of the government congregated to deliberate on whether FGDs were required in the first place. Their verdict draws on three reports by the CSIR-NEERI, the National Institute of Advanced Studies, and the Indian Institute of Technology, Delhi. The lead scientists of these three institutions – each 'supported' by different arms of the government – were at the meeting on April 23, along with representatives from the Office of the PSA, the Union Power Ministry, and the NITI Ayog. They were all largely unanimous that FGD 'was not necessary.' The guiding principles informing the committee's recommendation are that: SO2 levels in ambient air across the country are around 10-20 micrograms/cubic metre, well below India's air quality norms of 80; Indian coal is low in sulphur; SO2 levels in cities near plants with operational FGD units do not differ significantly from those without these units, and all of these were anyway well below permissible levels. The committee opined that concerns about sulphates – a potential by-product when SO2 emissions reach certain atmospheric levels, thus forming particulate matter (PM) – are unfounded. They cited an analysis of 5,792 PM samples across the country, which found 'low elemental sulphur' content (max 8 micrograms/m3 after outlier removal) which was deemed 'insignificant — for considering PM removal as a benefit of FGD.' FGDs may worsen carbon emissions One argument mentioned in the report was that using FGDs might result in additional carbon dioxide emissions and accentuate global warming. 'Installing FGDs in all TPPs by 2030 will increase the Auxiliary Power Consumption (APC) of the TPPs, thereby adding approximately 69 million tons of CO2 emissions to the atmosphere (2025-30) while reducing SO2 emissions by —17 million tons. Adding more long-lived CO2 emissions while removing short-lived SO2 emissions by installing FGDs indiscriminately in all TPPs in India despite the low Sulphur content of Indian coal will enhance global warming.' On the other hand, given that burning coal is India's primary source of electricity, India's annual SO2 emissions has risen from 4,000 kilotonnes in 2010 to 6,000 kilotonnes in 2022. By comparison, Indonesia, a source of imported coal to India has averaged about 2,000 kt in the same period, according to data from the Centre for Research on Energy and Clean Air (CREA), a Helsinki-based think tank. This is when India's emission standards, at 100 micrograms/m3 (thus requiring FGD), is lower than Indonesia's 800. Environment Ministry 'studying' order Those who attended the meeting included the Secretary, Minister of Power and three other senior officials; Secretary, Environment and Forests and two other officials; four officials of the Office of the PSA; representatives of the NITI Ayog, Central Electricity Authority (the power regulator), Central Pollution Control Board, and academicians. A detailed questionnaire to the Power Ministry was unanswered until press time. Tanmay Kumar, Secretary, Environment Ministry, told The Hindu that his Ministry was 'studying' the order. India has 180 coal-fired thermal power plants, each of them with multiple units. The 600 TPPs, depending on their size, age, proximity to densely populous cities, and background pollution levels, were given different timelines by the Environment Ministry to comply with the FGD installation requirements. Deadlines have been shifted three times, with the most recent extension coming on Dec 31, 2024. Major population centres The committee, according to the minutes of the meeting seen by The Hindu, will 'recommend' to the Power and Environment Ministers that only power plants located within a 10-km radius of the National Capital Region and other cities with a million-plus population be required to install FGDs. These are called Category A plants. There are 66 such plants, and only 14 of them have installed FGDs. Currently, all these plants are required to comply by 2027. Plants within a 10-km radius of 'Critically Polluted Cities' or 'Non Attainment Cities', called Category B plants, would be eligible for exemption on a 'case by case' basis, on a joint review by the Central Electricity Authority or Central Pollution Control Board. There are 72 such plants, with only four having installed FGD. These plants currently have a deadline of 2028. The remaining 462 plants all come under Category C, of which 32 have installed FGDs. These plants have been given a 2029 deadline, but the committee has now recommended that Category C plants be exempted completely, along with some units in Categories A and B which were set up at least 20 years ago. 'Will not affect public health' 'The key common point in these studies is that fitment of FGDs in all TPPs in India is not necessary to comply with the NAAQ (National Ambient Air Quality) standards whose compliance is essential to safeguard public health. While all TPPs must comply with the December 2015 stack emission standards for PM pollution and freshwater consumption, the SO2 stack emission standards can be relaxed to ensure that they are in conformance with the NAAQ standards which are notified by CPCB, keeping in mind the human health and other aspects. This way, TPPs may be able to comply with these standards without fitting FGDs. Since the existing NAAQ standards (for ambient SO2) must be complied with, this change will not affect human health in India,' the committee concludes. Currently, State governments or affiliated companies run a majority of the Category A TPPs, whereas private authorities hold the highest share in Categories B and C.
Business Recorder
7 days ago
- Business
- Business Recorder
When having too much still isn't enough
Pakistan's energy planning is entering a surreal phase. A country that once chased gas cargoes across oceans and rationed fuel to industry now finds itself unable to utilize what it already has. In a turn of events that defies economic logic and exposes deep flaws in governance, Pakistan is now facing a surplus, not of problems, but of gas. Yet the electricity remains expensive with little reduction in tariff, efficient plants stay idle, and energy bills continue to spiral. This is not a crisis of resources; it is a crisis of coordination. The government's recent decision to impose a levy on captive power use aimed to bring industrial consumers back to the grid. In principle, this was a step forward, correcting years of inefficient parallel generation. But the equation is not complete, and leads to the question what to do with the Cheap Spare Indigenous Gas that Captive is not going to consume? This move caused a sharp drop in gas off-take from captive users, estimated at nearly 200 mmcfd on the SSGC network alone. Of this, at least 100 mmcfd is now stranded, with no alternative demand in sight. Total indigenous gas surplus is estimated to have reached approximately 300 mmcfd across the country. Stranded gas is not just a lost opportunity, it is a liability. Gas that cannot be sold to industry or power producers will either be pushed into households at highly subsidized tariffs (further inflating the circular debt), or worse, left unused. Rising linepack pressures in the transmission system have already forced gas producers to shut off wells, even as Pakistan continues to service long-term RLNG contracts and diverting RLNG shipments. Sometime Indigenous Gas wells are shut off to make way for imported RLNG. It is important to note that RLNG and Indigenous-Pipeline Quality Gas molecules are the same, and molecules do not carry a price tag once inserted in the pipeline. Pricing is done in SSGC or SNGPL Accounting Softwares. Economic absurdity is shutting local wells while importing gas from abroad. Meanwhile, the RLNG that is available is being poorly utilized. Efficient RLNG-fired plants like Balloki, Bhikki, and Haveli Bahadur Shah, each over 1,200 MW and capable of running in high-efficiency combined cycle mode, are underused or being operated in single-cycle mode due to distorted merit order decisions and the high standalone price of RLNG (Rs 3,500/mmbtu). These plants are consuming close to 0.19 to 0.20 cubic meters of gas per kWh instead of their design-efficient 0.15, pushing the fuel cost up to Rs24 to 26 per unit, making them uncompetitive. The tragedy is that a solution exists and is already practiced in other sectors. Blending of RLNG and indigenous gas is already done for industrial and captive users through accounting, not physical mixing. The same can and must be extended to power producers. For example, blending 60 percent indigenous gas at Rs 1,050/mmbtu with 40 percent RLNG at Rs 3,500/mmbtu results in a weighted average fuel cost of Rs 2,030/mmbtu. When this is applied to efficient CCGTs operating at 8,000 Btu/kWh (about 0.0053 mmbtu/kWh), the fuel cost becomes just Rs 10.76/kWh, significantly lower than RLNG-only generation and even below imported coal (Rs 14 to 16/kWh) and furnace oil (Rs 30+/kWh). The Pricing of Gas by OGRA is distorted, the mechanism of Pricing Gas is 40 years old, world has shifted to real-time pricing of energy and we continue to price gas twice a year with a slow, tortoise speed and red-taped mechanism. Balloki, for instance, if run at 85 percent plant load factor using blended gas, could generate over 9,100 GWh annually. The cost savings just on fuel, Rs 11.24/kWh versus RLNG-only, would amount to over Rs 102 billion per year for one plant alone. Apply this logic to the full fleet of RLNG plants (about 3,600 MW) and the annual savings cross Rs 300 billion. Add in the reduction of coal imports, improved gas field economics, and improved circular debt recovery, and the benefit climbs even higher. Instead of using these surplus resources intelligently, Pakistan continues to sabotage itself. Rooftop solar installations under generous net metering policies are shaving off daytime demand, right when RLNG plants on Blended Tariff are needed to run optimally. Net metering allows unit-for-unit net-off and full retail buyback rates, creating perverse incentives. The government attempted to revise this policy, including lowering the buyback rate and adjusting the net-off window, but was forced to roll back reforms due to public backlash. At the same time, utility-scale solar projects, cleaner, cheaper, and easier to dispatch, have been excluded from the IGCEP 2024 to 2035. The result is policy incoherence. Off-grid rooftop systems are rewarded while grid-connected solar is ignored, and the system becomes more unstable. Solar-driven demand suppression, coupled with inefficient fuel dispatch, is a key reason RLNG remains surplus. It is not surplus because Pakistan has too much. It is surplus because we refuse to use it smartly. Blending gas for power producers does not require physical mixing. It requires accounting adjustments, coordination between SNGPL, SSGC, the Petroleum Division, and the Power Division, and a regulator that understands that efficient dispatch is not a theoretical construct but a fiscal necessity. If this coordination is enabled, surplus gas can be blended on paper and allocated to CCGTs. These plants then move up the merit order, displacing inefficient generation, lowering average cost of electricity, and stabilizing the grid. Larger fallacy lies in the incomplete treatment of captive power. The Solution is simple, Blend Gas+ RLNG by accounting as already being done for other categories of consumers of gas) and supply it to the Most Efficient CCGTs, make them move up in the merit order and get maximum output, this will not only produce cheaper electricity but the issue of Rising CD what has been a headache for our government can also be solved with additional benefit of Stranded RLNG Consumption. Shifting industry to the grid is not a complete solution. If the gas they once used remains unutilized or misdirected, the circular benefit is broken. True reform requires that the released gas be rerouted to efficient turbines via blends, something no one in government or even the IMF has understood. They treat captive reform as the endpoint. It is only the beginning. Without closing this loop, the government has merely shifted consumption, not optimized it. Pakistan doesn't lack gas. It lacks coherence. The solution isn't new generation capacity, more subsidies or financing the already inflated Circular Debt; it is simply to use what we already have, with logic and discipline. Until that happens, we will remain trapped in the same paradox, gas-rich, power-poor, and economically exhausted. (The writer is a power sector expert and a leading industrialist. He can be reached at: [email protected]) Copyright Business Recorder, 2025
Business Standard
27-05-2025
- Business
- Business Standard
Benchmarks trade with major losses; auto shares in pressure
The headline equity benchmarks traded with significant losses in the morning trade, tracking weak global cues, as investor sentiment turned cautious ahead of key domestic economic data releases. The Nifty traded below the 24,800 level. Oil & Gas shares slipped after advancing for the past two consecutive trading sessions. At 10:30 ST, the barometer index, the S&P BSE Sensex, slipped 833.96 points or 1.01% to 81,342.49. The Nifty 50 index tanked 242.75 points or 0.97% to 24,759.45. In the broader market, the S&P BSE Mid-Cap index shed 0.28% and the S&P BSE Small-Cap index fell 0.01%. The market breadth was negative. On the BSE, 1,342 shares rose and 1,850 shares fell. A total of 149 shares were unchanged. New Listing: Shares of Borana Weaves was locked in upper circuit of 5% at Rs 255.10 at 10:19 IST on the BSE, representing a premium of 18.10% compared with the issue price of Rs 216. The scrip was listed at Rs 243.00, exhibiting a premium of 12.5% to the issue price. So far, the stock has hit a high of 255.10 and a low of 243 On the BSE, over 1.92 lakh shares of the company were traded in the counter so far. Earnings Today: Life Insurance Corporation of India (down 0.58/%), Bharat Dynamics (up 3.53%), Bosch (down 0.25%), DCX Systems (up 1.77%), Dynamatic Technologies (down 0.24%), EID Parry India (down 0.94%), Entero Healthcare Solutions (up 0.01%), Esab India (down 0.42%), Gujarat Fluorochemicals (up 0.06%), Gateway Distriparks (down 1.01%), Goodyear India (up 0.06%), Hindustan Copper (up 0.57%), ITI (up 9.02%), JK Lakshmi Cement (up 0.87%), Medplus Health Services (down 1.98%), Minda Corporation (up 1.62%), Info Edge (India) (up 0.04%), NMDC (up 1.39%), V2 Retail (up 1.52%) will announce their quarterly earnings later today. Buzzing Index: The Nifty Oil & Gas index fell 0.94% to 11,419.55. The index rose 0.35% in the previous two consecutive trading sessions. Mahanagar Gas (down 1.53%), Bharat Petroleum Corporation (down 1.44%), Gujarat State Petronet (down 1.32%), Indraprastha Gas (down 1.31%) and Petronet LNG (down 1.26%) were the top losers. Among the other losers were Reliance Industries (down 1.21%), Oil & Natural Gas Corpn (down 1.09%), GAIL (India) (down 0.98%), Hindustan Petroleum Corporation (down 0.94%) and Adani Total Gas (down 0.71%) tumbled. Stocks in Spotlight: Orchid Pharma tumbled 4.47% after the company reported a 32.4% decline in consolidated net profit to Rs 22.29 crore in Q4 FY25 as compared with Rs 32.96 crore in Q4 FY24. Net sales increased 9.4% YoY to Rs 237.48 crore in Q4 FY25. Awfis Space Solutions rose 0.17%. The companys consolidated net profit soared 713.8% to Rs 11.23 crore on 46.2% increase in net sales to Rs 339.69 crore in Q4 FY25 over Q4 FY24. Olectra Greentech tanked 5.56%. The company reported a 53.2% increase in consolidated net profit to Rs 21 crore on 55.4% rise in net sales to Rs 448.92 crore in Q4 FY25 over Q4 FY24. KEC International rallied 6.71% after the companys consolidated net profit jumped 76.7% to Rs 268.20 crore on 11.5% increase in revenue from operations to Rs 6,872.12 crore in Q4 FY25 over Q4 FY24.
Business Standard
26-05-2025
- Business
- Business Standard
Sensex rises 437 pts; oil & gas shares advance; VIX rallies 5.81%
The domestic equity benchmarks traded with modest gains in early afternoon trade, supported by U.S. President Donald Trump initially issuing and then softening threats of increased tariffs on European imports over the weekend, and by the Reserve Bank of India's decision to pay Rs 2.68 lakh crore as a dividend to the central government for FY25. Investors will closely monitor global trade developments and the upcoming Q4 results of the companies across various sectors. The Nifty traded above the 24,950 mark. Oil & Gas shares extended gains for the second consecutive trading sessions. At 12:30 IST, the barometer index, the S&P BSE Sensex, added 436.91 points or 0.53% to 82,157.99. The Nifty 50 index advanced 134.10 points or 0.55% to 24,987.25. In the broader market, the S&P BSE Mid-Cap index added 0.44% and the S&P BSE Small-Cap index jumped 0.59%. The market breadth was positive. On the BSE, 2,286 shares rose and 1,615 shares fell. A total of 224 shares were unchanged. Economy: The Reserve Bank of India (RBI) on Friday handed the government a whopping Rs 2.68 lakh crore in surplus for FY25, 27% more than last year and even higher than what the Union Budget had estimated. Analysts suggest that this additional amount could support the governments objective of reducing the fiscal deficit to 4.4% for the current financial year. Derivatives: The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rallied 5.81% to 18.28. The Nifty 29 May 2025 futures were trading at 25,003.70, at a premium of 16.45 point as compared with the spot at 24,987.25. The Nifty option chain for the 29 May 2025 expiry showed a maximum call OI of 133 lakh contracts at the 26,000 strike price. Maximum put OI of 118 lakh contracts was seen at 24,000 strike price. Buzzing Index: The Nifty Oil & Gas index rose 0.64% to 11,541.35. The index rallied 1.42% in two consecutive trading sessions. Adani Total Gas (up 2.19%), Hindustan Petroleum Corporation (up 2.01%), Bharat Petroleum Corporation (up 1.16%), Oil India (up 1.1%), Reliance Industries (up 0.92%), Oil & Natural Gas Corpn (up 0.67%), GAIL (India) (up 0.47%), Gujarat Gas (up 0.15%), Petronet LNG (up 0.14%) and Indraprastha Gas (up 0.12%) advanced. On the other hand, Aegis Logistics (down 0.60%), Mahanagar Gas (down 0.25%) and Indian Oil Corporation (down 0.15%) edged lower. Stocks in Spotlight: Indigo Paints added 1.51% after the companys consolidated net profit rose 5.99% to Rs 56.90 crore in Q4 FY25 as against Rs 53.68 crore in Q4 FY24. Revenue from operations increased marginally to Rs 387.56 crore in the quarter ended 31 March 2025, compared to Rs 384.88 crore in the same period a year ago. GE Vernova T&D India hit an upper circuit of 10% after the companys standalone net profit surged 181.3% to Rs 186.50 crore on a 26.15% jump in revenue from operations to Rs 1,152.54 crore in Q4 FY25 over Q4 FY24. Finolex Industries surged 5.86% after the company's standalone net profit surged 111.75% to Rs 150.26 crore while net sales rose 17.04% to Rs 1,171.81 crore in Q4 March 2025 over Q3 December 2024.
