At a meeting chaired by Delhi Lt Governor Anil Baijal, options on managing the flyash of the plant, run by the NTPC, was also explored, a government official said.
The Badarpur plant, identified as a major source of air pollution, is housed in a complex spread around 1,000 acres, which has two schools and housing colonies.
"The housing colonies are in fairly good shape. After the NTPC officials move out, it can very well be alloted to staff of other agencies. The DDA will take a call on the issue," the official said.
The thermal plant will close by July 2018, the Supreme Court-appointed Environment Pollution-Prevention and Control Authority (EPCA) has said.
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The NTPC (National Thermal Power Corporation) has also prepared a remediation plan on managing the flyash, of around 250 lakh tonne, present at the site, which also adds to the level of particulate matters in the city's air.
The plan involves growing special plants (Ipomoea) to prevent the flyash from getting airborne as has been done in the entity's Dadri thermal power plant, using it as a raw material in brick kilns and in construction of a highway.
The NTPC-run plant will be allowed to function till around October subject to a set of conditions including the emptying of its flyash pit within a time-frame and timely commissioning of the 400-KV Tughlaqabad sub-station by June 2018.