The Hindu Business Line : 700-MW gas-based power plant in Tripura planned: ONGC Chief

WITH the company planning to set up a 700 MW gas-based power plant at Sonamura in Tripura, ONGC's drive for vertical integration is taking it towards being an independent power producer (IPP).

Infrastructure Finance and Leasing Services Ltd (IL&FS) will facilitate the development of the project and Power Trading Corporation (PTC) will provide payment security for generation. The project will be financed and managed by ONGC. The techno-economic feasibility study is likely to be over in the next six months.

Currently, ONGC produces roughly 1,000 MW of gas-based power at its different onshore and off-shore installations for captive use. Of this generation, close to 100 MW is sold commercially. Addressing a press conference here on Thursday, the company Chairman and Managing Director, Mr Subir Raha, said that the cost of the power plant in Tripura, where the company has a three billion cubic metre gas reserve, would be higher compared to other gas-based power plants because of logistics problems and also because the wheeling cost involved in feeding the power generated to the national grid.

"We expect the cost to go up to Rs 5 crore per MW." As the project will involve the biggest-ever capital investment in Tripura, ONGC has requested the State Government the maximum number of fiscal benefits. The Union Government runs special fiscal benefit schemes for investments in the North-Eastern States.

Mr Raha hinted that the State Government could provide a guarantee to the project. "We will invest in a project only when it is viable," he added.

A special purpose vehicle involving IL&FS and PTC may be floated for development of the project. While IL&FS would take care of the development, PTC would provide the much-needed payment security for the power generated. Unlike State electricity boards, PTC has so far maintained a `zero outstanding' record for power purchased.

On the time-frame for implementation of the project, Mr Raha said that it would depend on the independent techno-economic appraisals and other related approvals.

"We expect all this to be over in the next six months, following which the project will be placed for approval of the ONGC board of directors."

More Stories on : Diversification | Petroleum | Power

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page