Reliance Energy questions Rs 300cr guarantee claim

An offical spokesperson of Reliance Energy (REL) has expressed surpise at the move of Dahanu Taluka Environment Protection Authority (DTEPA) to ask for a bank guarantee of Rs 300 crore for setting up a flue gas desulphurisation (FGD) plant at its Dahanu Thermal Power Station (DTPS).

"The company has already submitted a schedule for implementation of the FGD project to DTEPA. Accordingly, the company has already placed a Letter of Intent on M/s Ducon for the execution of the FGD project. In spite of meeting the milestones in the implementation schedule as submitted to DTEPA, it is surprising that DTEPA has asked for a bank guarantee of Rs 300 crore," the spokesperson said in a release issued by REL to the BSE today.

Commenting on the emission levels and best practises adopted at DTPS , the spokesperson said: "The levels of low emission at DTPS does not create any problems of any type whatsoever either to the human life or to agricultural produce. The ambient air quality in Dahanu has been extremely good, and the emission levels have always been lower than the ambient air quality standards laid down in the National Ambient Air Quality Standards (NAAQS)".

There is not a single thermal plant in the country that maintains the level of emission compared to DTPS, the spokesperson added. "The emissions of sulphur dioxide and nitrous oxides by DTPS have always been lower than the prescribed limits. DTPS has not been creating any pollution whatsoever," the release said.

The release, however, added that the rapid environment impact assessment (Rapid EIA) study of DTPS by the Central Pollution Control Board (CPCB) had to the conclusion that the disadvantages of the installation of FGD plant outweigh the advantages that it offered.