China equipment ban: Power plants seen missing emission cut deadlines again

The ban on using Chinese equipment is seen to defer the process of installing pollution-reducing devices in power plants, as local companies which manufacture these machines are dependent on imports of components from the hostile neighbour. According to industry sources, about 20-30% of these components are made by local manufacturers and the balance comes from China.

The current uncertainty is also delaying the bid submission process for setting up the pollution controlling machines as the domestic industry in contemplating about changing their supply lines. Coal-based power plants across the country are in the process of installing flue gas de-sulphurisation (FGD) units and electrostatic precipitators (ESP) and upgrading existing equipment to meet the environmental norms. The Association of Power Producers (APP) has sought an extension of the 2022 deadline to install the equipment from the power ministry, pointing out that 77% of the plants have not yet awarded the contracts to install FGDs and ESPs, and are likely to miss their timelines.