CERC upholds supplementary tariff for DVC emission control systems despite relaxed standards
The Central Electricity Regulatory Commission (CERC) has upheld a supplementary tariff for the Emission Control System (ECS) installed at Damodar Valley Corporation's Bokaro-A Thermal Power Station, ruling that investments made under earlier emission standards cannot be disallowed simply because regulations were later relaxed.
The Commission, led by Chairperson Jishnu Barua, determined that the supplementary tariff for the 2024–2029 period would be allowed subject to prudence checks and true-up adjustments. DVC had installed both a wet Flue Gas Desulphurisation system to control SO₂ emissions and a Combustion Modification System to control nitrogen oxide emissions at the 500 MW station, in compliance with environmental norms prescribed by the Ministry of Environment, Forest and Climate Change in December 2015.
The project was approved by DVC's Board in February 2019, with contracts awarded to Techno Electric & Engineering Co. Ltd. and BHEL in July 2019. The Combustion Modification System was completed by December 2021, while the FGD system became operational on 22 June 2024. The Commission examined claimed time and cost overruns, condoning only part of the delay and restricting certain expenditures under applicable tariff regulations.
