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Capital Goods: Emission control equipment orders to finally kick start!
10-Jan-2018

The Ministry of Environment and Forests (MOEF) had notified new emission norms for air and water consumption in December 2015, with a deadline of two years for implementation. While the deadline has expired, very little progress has been made in this regard till date. However, the Central Electricity Authority (CEA) under the Ministry of Power has worked out a revised five-year timeline to December 2022 with power plants –this has been agreed to by the MOEF and power plants will have to install the requisite emission control equipment by December 2022. In this note, we delve into the potential opportunity from these norms over the next few years by analyzing the implementation plan for ~192GW of India's existing coal-fired capacity, identifying the players benefitting from this move, and gauging the impetus to replacement demand with old plants getting phased out faster