New CPCB pollution norms to hurt viability of CPP-based industries

Aluminium producers to be among worst hit

The latest pollution norms spelt out by the Central Pollution Control Board (CPCB) are bound to affect the viability of industries dependent on Captive Power Plants (CPPs) to run their operations.

According to the CPCB order, CPPs need to install Flue Gas Desulphurisation (FGD) units by June 30, 2020. FGD installation needs significant capital investment - estimated between Rs 40 and Rs 70 lakh per Mw.

CPPs are in a quandary as unlike Independent Power Producers (IPPs) and central or state owned generation utilities, they cannot pass on the hike to consumers.

"Industries based on CPPs are already struggling to stay afloat on