Others

Other Deals

Mitsubishi to pay NTPC Rs.851-Cr to exit Farakka thermal power project

Economic Times  

Mitsubishi has reached an agreement to exit a project at the Farakka Super Thermal Power Station in West Bengal. Under the terms of the deal, the Japanese firm will pay NTPC INR 851 crore in compensation. NTPC previously sought more than INR 1,200 crore in, while the firm had initially offered around INR 720 crore.The project, which was awarded six years ago with an initial estimate of INR 1,000 crore, involved the installation of flue gas desulphurisation (FGD) equipment to curb emissions. Although the project was scheduled for completion in 2025, significant work remains unfinished. NTPC had previously paid an upfront amount equivalent to approximately 20% of the original project value.Mitsubishi’s exit follows a shift in government policy regarding FGD mandates, as coal-fired power plants were largely exempted from these requirements last year following findings related to the sulphur content in Indian coal.