The Hindu Business Line : ONGC board okays proposals worth Rs 3,819 cr

New Delhi April 11 The board of Oil and Natural Gas Corporation Ltd (ONGC) has approved a slew of proposals involving investments of Rs 3,819 crore, including nod for augmentation of gas production in Tripura to feed the power plant involving an investment of Rs 1,817 crore.

The project includes fast-track exploration and development of gas resources through intensive drilling and setting up surface infrastructure, for supplying the gas to the 740-MW power plant of ONGC Tripura Power Company Pvt Ltd (OTPC), in which ONGC shall hold 50 per cent equity, according to a statement issued by the company.

"Approval has been given to develop upstream facilities to produce incremental gas of 3 million standard cubic metre (MMSCMD) — to raise production from the current level of 1.45 MMSCMD to 4.5 MMSCMD. The board has also cleared ONGC's equity investment in OTPC of Rs 576 crore," the statement said.

In the total investment of Rs 3,844 crore towards the integrated project with a debt-equity ratio of 70:30, ONGC's investment works out to be Rs 576 crore. The upstream and downstream activities will be progressively stepped up and the power plant is scheduled for commissioning by 2010. This integrated project will enable ONGC to harness its gas potential in the North-Eastern State through `Gas-to-Wire' concept, catalysing significant development in the region, the company said.

Other projects for which board approval has been given include construction of seven pipelines in Mumbai High (North) involving an investment Rs 355 crore. The seven pipelines are essential for realisation of full potential from Mumbai High (North) and shall be connected to the upcoming MHN Complex (facilities), the company said.While considering the `C-Series' Development Project, the company's board approved an incremental investment of Rs 795 crore for the project. The project's total investment now stands augmented from the earlier approved Rs 3,195 crore to Rs 3,990 crore. It will be completed by April 2009. The investment will go to create additional facilities at Mumbai High (North) for handling additional 3.0 MMSCMD of gas from `C-Series' wells.

Construction of an energy-efficient, green, intelligent and barrier-free office building (in around 32,000 square metres) at Rajarhat in Kolkata at an investment of Rs 228 crore was also approval. The board took these decisions at a meeting held on Tuesday.

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