The Hindu Business Line : ONGC close to resolving logistics block on Tripura project

Kolkata, Nov. 4 ONGC is close to resolving the transportation problem that has been delaying the implementation of the 726.6-mw gas-based power plant in Tripura.

The Bangladesh Government has given an in-principle approval allowing the Indian oil major to transport high tonnage power equipment through that country.

The company is hopeful of a final go-ahead shortly.

The Rs 3,000-crore project is being implemented by ONGC Tripura Power Company Ltd to monetise the identified and developed gas fields of ONGC.

The project is the single largest investment in the North-Eastern region.

The engineering, procurement and construction (EPC) contract for the 2X363.3 MW project was awarded to Bharat Heavy Electricals Ltd in mid-2008, targeting commencement of commercial generation between December 2011 and March 2012. However, the lack of transport infrastructure proved to be a problem in commissioning the project in time.

The ONGC Chairman, Mr R. S. Sharma, told Business Line that in a recent dialogue with the Government of India, the Bangladesh Government agreed in principle to make an exception to the Indo-Bangla protocol on inland water transit and trade to allow ONGC and its project contractors to access the river port of Ashugunj in Bangladesh.

Ashugunj, located about 67 km from Akhaura border in Tripura, is not covered under the protocol.

“The in-principle agreement between the two countries took place a week ago. The issue was discussed during the visit of the External Affairs Minister of Bangladesh a month ago,” an ONGC official said.

The Bangladesh Government was expected to give the approval in this direction following a detailed study of the road and port infrastructure concerned and after identifying the fiscal and other such responsibilities of both the countries.

A delegation of senior ONGC officials is expected to visit Bangladesh later this month to take stock of the infrastructure in Bangladesh and further the dialogue for securing the final approval.

“We understand that Ashugunj port is not fully equipped to handle 90 high-tonnage project cargo, including two gas turbines of 320 tonnes each. Accordingly we may have to upgrade the necessary port infrastructure in Bangladesh,” an ONGC source said.

“We are extremely hopeful of getting all clearances shortly as the project contractor needs to start dispatching equipment to Tripura latest by June-July 2010 to meet the targeted commissioning schedule,” the source added.