The Hindu Business Line : ONGC Tripura Power may see change in equity structure

ONGC Tripura Power Company Ltd (OTPCL) may witness a change in its equity structure with the possibility of ONGC acquiring a higher stake than the initially approved 26 per cent. As per the existing structure, the Tripura Government has been allotted a 24 per cent stake and IL&FS, the project developer, a majority 50 per cent stake in the special purpose vehicle (SPV).

The power project, the transmission SPV and the production of natural gas from ONGC's gas fields in Tripura will require a total investment of Rs 4,750 crore.

Talking to newspersons in Agartala, the ONGC Chairman, Mr Subir Raha, said, "We are yet to freeze the equity structure of OTPCL and may take a decision in the next few weeks."

The company has already pegged the cost of the 750-megawatt (MW), gas-based power plant at Palatana in South Tripura district at Rs 2,400 crore at the prescribed 70:30 debt-equity ratio. The project having two units with a capacity of 375 MW each may later be expanded to 1,100 MW.

The cost of the transmission project for wheeling OTPCL power from the Palatana plant site to Bongaigaon in Assam is estimated to be Rs 1,600 crore. The project will be executed by an SPV.

ONGC will also step up its gas production in Tripura from three fields (Sonamura, Gojalia and Agartala Dome) from a mere 1.4 mmscmd to 4.7 mmscmd. The identified reserves are at the Khwai and Baramura fields. The proximity from the producing and the identified fields allows OTPCL captive use of the gas available in the locality.

Interestingly, the project will convert ONGC's Tripura asset currently losing over Rs 100 crore a year to a profit-making asset by way of monetising the production opportunities. Duel to the lack of demand, the company currently struggles to keep the gas production at the bare minimum. ONGC will also gain substantially by replacing roughly 150 MW of grid power currently consumed in the West coast by cheaper OTPCL power.

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