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Pratim Ranjan Bose

Kolkata , Oct. 6

ONGC Tripura Power Ltd (OTPL) has received in-principle clearance from the Ministry of Environment and Forests for setting up a 380X2-MW gas-based power generation unit at Palatana in Tripura.

ONGC sources told Business Line that the Empowered Committee of the MoEF has "considered the proposal," which was now awaiting formal approval.

The sources said the project's detailed feasibility report (DFR) is expected to be finalised by the end of this month following which plans may be firmed up for financing the proposed power plant.

According to preliminary estimates, the project is likely to cost around Rs 3,500 crore to be financed at the prescribed 70:30 debt-equity ratio. ONGC has ruled out the IPO route for raising the equity capital and is negotiating with various interested parties, including Power Trading Corporation, for picking up stake in the project.

The oil exploration and production major holds 26 per cent stake in the company followed by Tripura Government with 24 per cent. IL&FS is a strategic investor in the project holding 50 per cent equity stake, which is subject to divestment in a phased manner.

Apart from the DFR of the main project, the company has also taken up a feasibility report for the North Eastern Power Transmission Corporation (NEPTC), an SPV created to commission the Rs 1,600-crore transmission infrastructure to feed the power generated by OTPL into the national grid.

ONGC and Power Grid Corporation of India Ltd will hold 26 per cent each out of a projected paid-up equity capital of Rs 480 crore in NEPTC. The remaining 48 per cent (Rs 230 crore) will be raised through private placement with the existing investors in the region.

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