Mitsubishi moves to exit NTPC project

New Delhi: Japanese conglomerate Mitsubishi is seeking to exit a flue gas desulphurisation (FGD) installation project at NTPC's Farakka Super Thermal power station in West Bengal and has offered to pay a penalty for leaving the project incomplete, said people familiar with the development.

Public sector undertaking NTPC has sought more than ₹1,200 crore from Mitsubishi Power India Private Limited (MPI), while the Japanese firm has offered around Rs 720 crore for exiting the project located in Murshidabad district.

"Negotiations are underway to reach a settlement," an official said on condition of anonymity.


NTPC did not respond to ET's queries till press time.

Mitsubishi said it will continue to execute the work in accordance with the contract with NTPC. "We are currently carrying out the installation work of flue gas desulfurization equipment for the Farakka Power Station in India. We will continue to execute the work in accordance with the contract with NTPC," Mitsubishi said in response to a query from ET.

The company did not explicitly say that it wanted to exit the project.

In June 2025, the government exempted most coal-fired power plants from installing FGD units, designed to curb emissions, reversing its decade-old stance.

The Japanese company was mandated to install wet limestone FGD systems at Farakka Super Thermal Power Station in three stages (3x200MW, 2x500MW and 1x500MW) for NTPC, but it has completed only the first stage.

"Mitsubishi has offered an upfront reimbursement of payment released by NTPC for this project till November 2025," said a senior official.

The project was to be completed last year, but "significant" work is still left to be done, according to the official.

Mitsubishi declined to comment on the reasons behind the delay, citing confidentiality of its agreement with NTPC.