Ducon Infratechnologies Ltd is eyeing business opportunity of over Rs.10,000 crore in India’s flue gas desulphurization (FGD) market, the company said in a stock exchange communication.
The company communication noted that growing awareness regarding environmental pollution and government’s action to curb the same are driving the growth of FGD market.
Ducon being the leading FGD supplier in the Indian market and being the only company to have successfully operating FGD system installations for more than a decade in India stands to gain tremendously from this potential growth, the company said.
Noted FGD installations by Ducon include: 500-mw seawater FGD systems at Dahanu power plant and 2×600 MW wet Limestone FGD system at Udupi Power Plant.
Ducon has estimated that out of the country’s total installed capacity of 211 GW relating to coal-fired thermal power plants, FGD equipment has been ordered only for 87 GW and the remaining 124 GW is yet to be awarded.
Innovative strategies
In order to make strides in this rapidly evolving FGD market, Ducon has adopted innovative strategies to advance its FGD footprint in the Indian market, the company said.
A single FGD project can range in value from Rs.200 crore to Rs.600 crore, and can take 2 to 3 years for completion. Thus, Ducon can secure only a couple of such projects on its own annually, it said. Ducon has therefore formed alliances with leading EPC companies and has jointly bid for many FGD projects. The nature of these alliances involve that Ducon will provide the engineering and crucial technological parts for each project and the EPC company will execute the rest of the project.
By increasing its footprint, Ducon sees FGD-related business opportunity of Rs.10,000 crore to Rs.15,000 crore, over the next 3-4 years.
Also read: Ducon Infratechnologies To Supply FGD Package For Suratgarh Power Plant
Mitigating air pollution
India has been dependent upon coal-based thermal power generation for its electricity production which significantly contributes to the air pollution. However, recently, India has planned to mitigate the air pollution from all power plants by implementing new emission norms, requiring retrofitting existing coal thermal power plants with equipment to control sulphur dioxide (SOx) and nitrogen oxides (NOx) emissions by installing equipment like flue gas desulphurization (FGD) systems and selective catalytic reduction (SCR) systems, respectively.
