Failure Mode and Effect Analysis (FMEA) has a well deserved reputation for systematic and thorough evaluation of failures at the system, sub-system or component level in all manufacturing and processing sectors. These organizations are looking for the final product to be “safe and reliable”. FMEA helps designers to identify and eliminate/control dangerous failure modes, minimizing damage to the system and its users. This paper, as an extension to the prior research work, introduces an insight into the reasons of failure and its effects in a thermal power plant opted for the case study, based on conceptual designs in context of FMEA. The analysis takes into account preparation of appropriate diagnostic and maintenance procedures with the aim of enhancement of thermal plant reliability. The FMEA technique used may be helpful for the design and maintenance departments to curtail the downtime of the plant.