President Pranab Mukherjee today inaugurated the first unit of a 726.6 MW gas-based power plant at Palatana of state-owned Oil and Natural Gas Corp's (ONGC) mega power project being built at a cost of Rs3,804 crore. The second 363.3 MW unit is expected to commence operation in August.
The power plant, which has started generating power, will pave the way for effective utilisation of natural gas discovered in Tripura, Mukherjee said while inaugurating the power plant.
Mukherjee expressed the hope that this power plant will help attract larger investments in Tripura and meet the requirements of power deficient states in the region.
The power plant is also the largest project in the world registered under the Clean Development Mechanism of the United Nations Framework Convention on Climate Change (UNFCCC). It would earn India over a million of carbon credits, he said.
Speaking on the occasion, minister of petroleum and natural gas M Veerappa Moily said the total investment in Tripura including the cost of gas field development and transportation of gas, will be in excess of Rs10,000 crore.
The 2x363.3 MW combined cycle gas turbine based power project has been built by ONGC through a special purpose vehicle, ONGC Tripura Power Company (OTPC).
ONGC holds 50 per cent stake in the company while Infrastructure Leasing and Financial Service Ltd (IL&FS) has 26 per cent. The Tripura government has 0.5 per cent equity while the balance is yet to be tied-up.
The project has been financed in a debt to equity ratio of 3:1.
ONGC supplies 2.65 million standard cubic metres per day of gas to the power plant under a 15 year gas sale and purchase agreement, an official statement said.
OTPC has entered into a long-term PPA with the beneficiary states in the North East for about 87 per cent of the total project capacity.
North East Transmission Company Limited (NETCL), a JV company of OTPC, is setting up 661-km 400 KV double circuit transmission line from the project site in Palatana to Bongaigaon to evacuate power generated from the project.
The laying of the Palatana-Silchar-Byrnihat section has been completed while the balance portion up to Bongaigaon is expected to be completed by the time of the commissioning of Unit-II, the statement added.