The Hindu Business Line : ONGC to pick up stake in SPV for Tripura power project

ONGC will formally kick-off its plan to set up a 700-MW gas-based power station in Tripura on February 17 by picking up a 26 per cent stake in a special purpose vehicle (SPV).

The SPV will later be incorporated as ONGC Tripura Power Ltd (OTPL) to undertake the project. The detailed feasibility study for the project will be launched by April this year.

Infrastructure Leasing and Finance Corporation (IL&FS) and the Tripura Government will hold a 50 per cent and 24 per cent stake respectively in OTPL.

IL&FS is also working to form another SPV to set up the transmission network. Power Grid Corporation has expressed willingness to take a lead role in setting up the transmission network.

Addressing the media here today, the ONGC Chairman, Mr Subir Raha, said that a number of private and public sector companies including engineering major BHEL had expressed willingness to pick up equity stake in OTPL. Power Trading Corporation has already been identified as a project partner to ensure smooth evacuation and high plant load factor .

About the company's proposed venture in petrochemicals, he said that the contracts for commissioning the methane - propane extraction plant at Dahej in Gujarat would be awarded by June-July this year. "The contracts for the naphtha cracker plant will likely be awarded by end-2005."

Leaving for Russia to participate in NELP-V roadshow along with the Petroleum Minister, Mr Raha, said ONGC has also expressed interest in Sakhalin-III oil block in Russia.

ONGC is also expected to enter into a pact with Gazprom of Russia, next week. "We currently have an MoU in place. We will now explore the scope of collaboration," Mr Raha said.

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