Mitsubishi to pay NTPC Rs 851 cr for project exit
New Delhi: Japanese conglomerate Mitsubishi is nearing an exit from a flue gas desulphurisation project at NTPC's Farakka Super Thermal Power Station in West Bengal. The two entities have agreed on a compensation of ₹851 crore from Mitsubishi to NTPC, pending final board approvals. The project, originally valued at ₹1,000 crore, had only 20% paid upfront by NTPC six years ago.
The target completion date was set for 2025, but substantial work remains to be done. In April, NTPC sought over ₹1,200 crore from Mitsubishi Power India Private Limited for exiting the project, while Mitsubishi had initially offered around ₹720 crore. Negotiations have now reached an agreement, with an executive confirming the breakthrough.
Mitsubishi denies commenting due to confidentiality obligations, while NTPC has not responded to inquiries. In June, the government exempted most coal-fired power plants from installing FGD units, reversing its stance citing new studies that Indian coal emits minimal sulphur when burnt for power generation. Mitsubishi was obligated to install wet limestone FGD systems in three stages at Farakka Super Thermal Power Station, but only the first stage has been completed.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
