New Business Opportunity from Old Thermal Power Plants
The ageing thermal power plants of the country could mean good times for companies in the dismantling business.
Nearly half of India’s thermal power plants – which account for almost thirty percent of the total installed capacity – are more than twenty five years old and a large number of them are approaching forty which means an end to their useful life span. After that, they will necessarily need to be scrapped, opening up a market for effective disposal of these plants.
Directorate General of the Association of Power Producers, Ashok Khurana stated that, 188 thermal power plants out of a total number of 396 are over twenty five years old. They have a total installed capacity of about 56 GW, out of a total installed capacity of 188 GW and a large number of these plants would be scrapped, he added.
The need for shuttering old plants has opened up a huge market for decommissioning and effective disposal, similar to the ship breaking industry. Companies such as MSTC and mjunction have stepped in to grab a chunk of this market.
mjunction’s CEO, Vinaya Varma stated that, their focus is on transparency and price discovery of such assets, which are not only economically unviable but also a hazard for the environment.
