ONGC to pick 50% in SPV to execute Tripura Power

KOLKATA: The Oil and Natural Gas Corporation has reworked the project structure of ONGC Tripura Power Corporation, its proposed gas-based power project in the state. The Rs 4,000-crore project — consisting of a power unit and a gas transmission network — will be taken up under a single special purpose vehicle (SPV), in which ONGC will pick up a 50% stake.

Significantly, ONGC has invited global bids for the engineering procurement & construction (EPC) contract for the project to be commissioned at Palatana, some 60 km from Agartala. At the initial meeting of bidders held in Agartala between February 22-23, Alstom, Siemens, Essar Power and L&T were among the participants. The bids are likely to be opened towards end-April, while the project completion schedule is 27 months.

The Tripura government will pick up a 0.5% stake while IL&FS will have a 26% stake in the SPV. IL&FS will play the role of project facilitator while the rest 23.5% will be offered to prospective investors. Earlier, ONGC had decided to take up the 740 mw combined cycle power generation company at Palatana under its own balance sheet. A separate SPV was planned for a 640-km gas pipeline between Palatana and Bongaigaon in which ONGC had decided to pick up 15%.

Under the original structure, ONGC was to take up the generation project on its own balance-sheet and was planning to hold up to 26% stake in the SPV slated to create the 630 km of 400 kv transmission facilities from Palatana in Tripura to Bongaigaon in Assam. A break up of the project cost includes Rs 2,200-crore for the power plant and Rs 1,600-crore for a 640-km gas pipeline between Palatana and Bongaigaon.

ONGC will also spend around Rs 2,800 crore over the next 3-4 years for upgradation of existing gas facilities in the state. This will involve expansion of facilities at Baramura, Agartala Dome and Konaban plus adding a new field at Sonamura. New areas considered for drilling include Kunjban, Sundalwadi, Tulamura and Baramura.