The Hindu Business Line : Financial closure of ONGC Tripura Power likely this fiscal

ONGC is hopeful of financial closure of ONGC Tripura Power Ltd (OTPL) in this fiscal. The detailed feasibility report for the project is expected to be ready by October this year.

The State Government has already forwarded the company's plea for environmental clearance to the Union Ministry of Environment and Forests.

While the studies so far has pegged the project capacity at 740 MW, the company is preparing a roadmap for future expansion of the capacities beyond 1,000 MW, depending upon the availability of natural gas.

ONGC has already announced a Rs 400-crore investment plan for stepping up natural gas production in the State from 1.7 million standard cubic metres per day (mmscmd) to 4.5 mmscmd by 2007 by bringing the proven reserves in production.

Almost 90 per cent of the production in the State will be used for captive consumption by OTPL.

Despite identifying several proven reserves in the State, ONGC has so far struggled to keep the production at bare minimum due to lack of demand from the industrial sector.

Sources said ONGC has already sounded financial institutions for raising 70 per cent debt component in the project.

The IPO route for raising finances was ruled out.

Describing the movement of equipment to the project site in North East as the biggest challenge of commissioning the power plant, the sources said to solve the problem the company has held detailed negotiation with the logistics providers.

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