ONGC to have 50.5 per cent stake in Tripura power project
10 Nov 2006
Mumbai: Oil and Natural Gas Corp (ONGC) together with Infrastructure Leasing & Financial Services (IL&FS) is setting up a Rs2,000 crore power project in Tripura with a generating capacity of 740 MW. ONGC will take 50.5 per cent stake in the company while IL&FS will have a 26 per cent stake. IL&FS would arrange investors for the balance equity.
The joint venture power generation project will also undertake the associated transmission work of the Tripura power project.
"We have changed the format of the 740 MW project. While earlier it was proposed that ONGC would set up the power plant and a separate company would implement the transmission link for evacuation of power from the plant, now we propose to do both the jobs through just one company," an official said.
The official said both the generation and transmission arms of the project would now be on the balance sheet of ONGC.
"An integrated entity has the benefit of de-risking project implementation and operations," he said. The power plant is ONGC''s first mega ''gas-to-wire'' project to monetise significant idle and stranded gas in the state. It will initially produce four million standard cubic meters per day and increase it to five mmscmd by boosting exploration.
The project is estimated to cost around Rs2,087.6 crore and would be implemented by end of 2009. The generated power will cater to the northeast demand and also be transmitted to northern grid to feed demand in north India.
IIFC is likely to finance up to 20 per cent of the project cost or Rs740 crore in debt.
IL&FS has done the project development work and is likely to be the implementing agency.
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