The report summarizes progress in design, fabrication, and construction activities. Progress on the fluid bed combustor, piping, fuel feeding system, ash system, and the control and instrumentation design is described. The report lists the construction activities completed during this quarter which included bed tubes installation, fan inlet flow measuring duct, bag filter, silencers for roots blowers, electric power cabling connections, light distributor panel and transformer installation inside the control panel, steam/water recirculation piping, fine coal receiving vent filter, and partial painting of ash silo and boiler.