Now Reading: Mitsubishi to pay NTPC Rs 851 crore to exit Farakka FGD project
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Mitsubishi to pay NTPC Rs 851 crore to exit Farakka FGD project
Mitsubishi to pay NTPC Rs 851 crore to exit Farakka FGD project
Mitsubishi has agreed to pay NTPC Rs 851 crore to exit a flue gas desulphurisation (FGD) project at the Farakka Super Thermal Power Station in West Bengal. The boards of both companies…
The Story in Brief
Mitsubishi has agreed to pay NTPC Rs 851 crore to exit a flue gas desulphurisation (FGD) project at the Farakka Super Thermal Power Station in West Bengal. The boards of both companies must still approve the deal, sources told ET. The project was originally valued at Rs 1,000 crore when awarded six years ago, with NTPC paying 20% upfront. Completion was due by 2025, but significant work remains unfinished.
ET previously reported that NTPC had demanded over Rs 1,200 crore in compensation from Mitsubishi Power India, while the Japanese firm had offered about Rs 720 crore. In June 2025, the government exempted most coal-fired plants from installing FGD units, citing studies that Indian coal emits low sulphur. Mitsubishi had completed only the first of three stages at Farakka.
The Indian Opinion
The Mitsubishi exit from Farakka highlights a pattern where ambitious environmental compliance projects falter after policy reversals. Rather than blaming one side, the Rs 851 crore settlement reflects a mutual recognition of changed ground realities. The real test will be whether other stalled FGD contracts follow suit, and how many gigawatts of coal capacity remain without scrubbers.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
