The first Unit of ONGC’s Mega Power project in Tripura was formally dedicated to the Nation by the Hon’ble President of India Shri Pranab Mukherjee at Palatana (Tripura) on 21st June 2013. Among the dignitaries present on the occasion were Governor of Tripura, Shri Devanand Konwar, Chief Minister of Tripura, Shri Manik Sarkar, Union Minister of Petroleum and Natural Gas, Dr. M. Veerappa Moily, Minister of State for Petroleum and Natural Gas Smt. Panabaka Lakshmi and Chairman, ONGC-Tripura Power Company (OTPC) and ONGC Group of Companies, Shri Sudhir Vasudeva. This Unit 1 of the gas-based plant will generate 363.3 MW. The Unit II of the 726.6 MW power plant is expected to be commercially operational later this year.
Speaking on the occasion, the President said nature has bestowed Tripura with abundant natural gas. This power project by OTPC in a land locked, logistically challenged and difficult terrain is an important feat. It would pave the way for effective utilization of discovered gas. He expressed hope that this power plant would meet the requirements of power deficient states in the region and open up avenues for industrialization in Tripura. The President pointed out that the power project not only constituted the largest investment in the North East but it was also the largest project in the world registered under the Clean Development Mechanism of the UNFCC. It would earn India over a million of carbon credits.
The President specially thanked the President, Prime Minister and Government of Bangladesh for their support in making this project possible. He called for increased cooperation between India and Bangladesh in power sector. He said it was a much awaited and proud moment for all stake holders. He lauded the efforts of those associated with this important venture.
Petroleum Minister Dr Veerappa Moily informed that in line with Government’s efforts to enhance power generation capacity in the country, the government allocated ONGC’s Tripura gas for setting up of this mega power project in the state. This project would ensure abundant availability of the power in the region that in turn will provide significant spur to the growth activities. He added that this single project initiative of ONGC would bring in investments in excess on Rs. 10,000 crore in the region, when we consider the upstream investment of ONGC for supply of gas to the project and also the downstream transmission line from the project site at Palatana to the PGCIL grid-point at Bongaigaon being set up by North East Transmission Co. Ltd. (NETC) for evacuation of power from the project.
He added that special credit must go to ONGC to have successfully implemented this bold project at such a difficult terrain from logistics and support infrastructure point of view. ONGC realized the audacious dream of transporting such heavy and over-dimensional equipment through the territories of Bangladesh. Dr Moily underscored fact that the central and state governments provided all the support in helping ONGC realize its vision for the region. “This daring dream will not only make the region power surplus, but also has provided a platform for further improvement of the ties between the two neighboring nations. The credit for successful implementation is also due to the managements of OTPC and BHEL”, the Minister said.
ONGC, a leading oil PSU under the Ministry of Petroleum & Natural Gas, has ventured into power generation in north-east to monetize its natural gas resources, which were idle for want of an industrial market. With a total investment of around Rs. 3,804crore, this is the single-largest investment in north-east India.
ONGC Tripura Power Company (OTPC) has been floated as a joint-venture of ONGC, IL&FS Energy Development Company Ltd. and Tripura Government. The 2×363.3 MW Combined Cycle Gas Turbine based power project has also been registered as a Clean Development Mechanism (CDM) project with United Nations Framework Convention on Climate Change (UNFCCC).
Background:
OTPC, a joint venture company of ONGC, IL&FS Energy Development Co. Ltd. and Govt. of Tripura, is setting up a 726.6 MW (2×363.3 MW) capacity Combined Cycle Gas Turbine based Mega Power Project in the state of Tripura with the objective of monetization of gas, which had been lying idle for want of adequate market in the region. The project cost is estimated at Rs.3,804crore being financed in a debt to equity ratio of 3:1. For the Unit-II, OTPC has completed a significant portion of work through its EPC contractor BHEL with installation of gas turbine and generator, while the erection of the associated system and auxiliaries is in progress. The erection of the switchgears, panels, etc. is also under progress. The Unit-II is expected to achieve Commercial Operation Date (COD) in August 2013.
ONGC has completed the upstream developmental work and the gas pipeline infrastructure to supply natural gas for both the units of the power project. Besides supplying the natural gas, ONGC also holds 50 per cent of OTPC shares – the largest shareholding in OTPC. OTPC’s Board of directors is chaired by ONGC CMD, and consists of two other ONGC representatives. The other key promoters, IL&FS has 26% stake in OTPC through its subsidiary IL&FS Energy Development Company Ltd. and Government of Tripura (GoT), has taken 0.5% equity in the project and has extended its support by providing tax and other fiscal benefits to the project.
OTPC has signed a Gas Sale and Purchase Agreement (GSPA) with ONGC for supplying 2.65 million metric standard cubic meters per day (MMSCMD) of gas at the fence of the plant site which would be sufficient to meet the requirement of power plant at 85% plant availability. The GSPA is valid for a base term of 15 years (against the assumed plant life of 25 years) commencing from the commercial supply date. The GSPA also provides for extension of the base term by two additional five years terms. The supply of gas at a firm price with extension of 4% every year would ensure a competitive tariff for the period over the long term.
OTPC has entered into a long-term PPA with the beneficiary States in the Northeast for approximately 87% of the total project capacity as per the allocation decided by Ministry of Power, Govt. of India. The said PPA is valid for a period of 25 years from COD. The tariff in the long-term PPAs is based upon Central Electricity Regulatory Commission (CERC) tariff guidelines which assure a 15.5% Return on Equity (ROE) after accounting for the expenses. The balance capacity of approximately 13% will be sold through short-term/merchant sale route by OTPC.
The OTPC project, combined with ONGC’s upstream gas supply development project and associated 400 KV Double Circuit 661 km long transmission line from the project site in Palatana to Bongaigaon being implemented by North East Transmission Company Limited (NETCL), a JV company of OTPC, to evacuate the power generated from the project, constitutes the single largest investment in the entire NE region.The laying of the Palatana-Silchar-Byrnihat section has been completed and COD has been declared, while the balance portion upto Bongaigaonis expected to be completed matching with the commissioning of Unit-II.