The Hindu Business Line : ONGC to invite tenders for power grid network

ONGC will invite tenders for forming a power grid network covering its off-shore and on-shore rigs shortly. The rigs put together produce roughly 800-900 MW of captive gas-based power.

While the grid network will help the company optimise its capacity utilisation, ONGC is negotiating with Power Trading Corporation (PTC) to enter into an agreement under which the latter will be selling the surplus power. The company expects to have an exportable surplus of roughly 250 MW.

Meanwhile, the company is discussing with suppliers of power generation equipment the size of its proposed gas-based power station at Sonamura in Tripura. Though the original proposal was to build a 750-MW power station at a cost of approximately Rs 3,500 crore to exploit its idle gas reserves in the State, the project site being located in the hilly region the carrying of plant and machinery to the site may prove to be a critical issue before the company.

"While we are looking for a big capacity to economise on operations, we are now talking to vendors to get an idea of the size of plant and machinery that could be transported to that region," the ONGC Chairman cum Managing Director, Mr Subir Raha, told newspersons here on Wednesday.

The company will shortly form a special purpose vehicle combining Infrastructure Leasing and Finance Corporation and Tripura State Power Development Corporation, to commission the project. ONGC has already received the approval of the Union Government for investing in the project.

Asked about its plan to harness wind energy, Mr Raha said ONGC, being a major power producer and consumer, had taken a conscious decision to harness alternative energy primarily out of environmental concerns. "Moreover, use of alternative energy paves way for saving on requirement of natural gas for captive generation and generate revenue on the same."

"Initially, we have decided to set up such wind energy generation stations in Gujarat," Mr Raha said adding that the company may set up such units in Tamil Nadu in the future.

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