Jaipur: The future of flue gas desulphurisation (FGD) systems at the state’s ’s thermal power plants remains uncertain after the Rajasthan Electricity Regulatory Commission (RERC) directed Rajasthan Vidyut Utpadan Nigam Ltd (RVUNL) to stop all work related to the projects and suspend further spending.RVUNL informed the commission that terminating the contracts could cost around Rs 2,900 crore, slightly more than the estimated cost of completing the installations. The utility also argued that money spent on abandoned projects might not be recoverable through electricity tariffs.FGD systems were introduced under environmental norms issued by the ministry of environment, forest and climate change in 2015 to reduce Sulphur emissions from coal-based power plants. However, the Centre withdrew the mandatory requirement in July 2025 following concerns over the high cost of the technology and questions about its effectiveness.Before the requirement was withdrawn, RVUNL had already awarded contracts for installing FGD systems at its thermal power plants in Kalisindh, Chhabra and Suratgarh and had spent substantial amounts on the projects.Manish Kumar of Centre for Energy, Environment and People said, “The Ministry of Power (MoP), the Central Electricity Authority (CEA), and the Central Electricity Regulatory Commission (CERC) must urgently issue transitional guidelines to clarify the next steps for affected projects. Ultimately, this regulatory uncertainty delays key decisions, which will drive up costs for consumers.”During tariff hearings for 2026-27, the Commission sought details of the projects and asked RVUNL to assess the financial impact of either continuing or cancelling them.The Commission, however, expressed concern that continuing with infrastructure that is no longer mandatory could increase costs for power distribution companies and consumers. It asked the Rajasthan govt, the sole owner of RVUNL, to decide whether the projects should proceed.As no decision was received within the prescribed period, the Commission ordered RVUNL in May 2026 to halt all ongoing work and stop further expenditure until a final decision is taken. RVUNL has filed a review petition and suspended work on the projects.
