Selective Catalytic Reduction (SCR) is an advanced active emissions control technologies that offers an economic and effective means of reducing Oxides of Nitrogen (NOx) emissions from flue gas by injecting a reductant agent through a special catalyst into the exhaust stream of flue gas. SCR is typically capable of removing 80 to 90 percent of NOx emissions from fossil fuel power plants, and is widely considered the most effective technology demonstrated up to date for this purpose. SCR technology is designed to permit nitrogen oxide (NOx) reduction reactions to take place in an oxidizing atmosphere. It is called "selective" because it reduces levels of NOx using ammonia as a reducing agent with in a catalyst system. The chemical reaction is known as "reduction" where the flue gas is the reducing agent that reacts with NOx to convert the pollutants into nitrogen, water and tiny amounts of CO2. SCR technology is one of the most cost-effective technologies available to reduce NOx emissions from power plants. All Power plants installed after 1st January, 2017 must meet the latest Environmental Protection Agency (EPA) emission standards. Out of all emissions, the oxide of nitrogen (NOx) has to reduce less than 100 mg/Nm3 levels from 300 mg/ Nm3. In order to achieve emission norms set by Ministry of Environment and Forest (MOEF), Government of India for NOx level from the newer power plants, BHEL has decided to establish a SCR based in-house test facility which can handle higher ash content of Indian coals. The objective of this project was to establish the 20 litres capacity Selective Catalytic Reduction (SCR) test facility in Advanced Pressurized Fluidized Bed Gasification (APFBG) test facility and also evaluate the performance of 11.8mm pitch Honeycomb type catalyst for NOx reduction by operating APFBG test facility in combustion mode with high ash Indian coal. The Honeycomb type catalyst was tested with high dust conditions by varying the flue gas temperature from 300 Deg. C to 350 deg. C. The results showed that the SCR test facility with honeycomb type catalyst has been established successfully and also achieved very satisfactory performance with high dust conditions. The honeycomb catalysts was removing minimum of 67% and Maximum 80% NOx from flue gas with 30-52 grams/Nm3 dust concentration. Ammonia slip was measured in the range of 4 to 6 ppm and the ratio of ammonia (NH3) to oxides of nitrogen (NOx) was maintained as 1.0 for all experiments.