Agartala: President Pranab Mukherjee Friday inaugurated the first unit of state-owned Oil and Natural Gas Corp's (ONGC) mega power project built at a cost of Rs 3,804 crore.
The first unit of the 726.6 MW gas-based power plant at Palatana near here has started generating electricity and the second 363.3 MW unit is expected to commence operation in August.
Speaking on the occasion, Mukherjee said the power plant will pave the way for effective utilisation of natural gas discovered in Tripura.
He expressed hope that this power plant would meet the requirements of power deficient states in the region and open up avenues for industrialization in Tripura.
Besides constituting the largest investment in the North East, the power plant is also the largest project in the world registered under the Clean Development Mechanism of the United Nations Framework Convention on Climate Change (UNFCCC). It would earn India over a million of carbon credits, he said.
Oil Minister M Veerappa Moily said the total investment in Tripura after including the gas field development cost and an transmission line for evacuation of power, will be in excess of Rs 10,000 crore.
The 2x363.3 MW combined cycle gas turbine based power project has been built by ONGC through a special purpose vehicle, ONGC Tripura Power Company (OTPC).
ONGC holds 50 percent stake in the company while Infrastructure Leasing and Financial Service Ltd (IL&FS) has 26 percent. Government of Tripura has 0.5 percent equity while the balance is yet to be tied-up.
The project has been financed in a debt to equity ratio of 3:1.
ONGC supplies 2.65 million standard cubic metres per day of gas to the power plant under a 15 year Gas Sale and Purchase Agreement, an official statement said.
OTPC has entered into a long-term PPA with the beneficiary States in the Northeast for approximately 87 percent of the total project capacity as per the allocation decided by Ministry of Power.
A 400 KV Double Circuit 661 km long transmission line from the project site in Palatana to Bongaigaon is being implemented by North East Transmission Company Limited (NETCL), a JV company of OTPC, to evacuate the power generated from the project.
The laying of the Palatana-Silchar-Byrnihat section has been completed while the balance portion upto Bongaigaon is expected to be completed matching with the commissioning of Unit-II, the statement added.