Note on ONGC Tripura Power Company Ltd. (OTPC) (August 2007)
The MoP&NG held a Strategy meet on 24-26 August 2007 in Agra for the Tripura Power project. It is a single SPV between ONGC & Tripura Power Company Ltd. The objective of the project is monetization of idle gas assets of ONGC in Tripura and fillip to E&P efforts in the State. The salient feature of the project is Generation - including Combined Cable Gas Turbine (CCGT) Power Plant of capacity 2x370 MW using advanced class machines at Pallatana, Tripura. Power sale arrangement is first to NE States and for balance-wheeling to Northern grid of PGCIL.
Project Structure: A single SPV ONGC Tripura Power Company (P) Ltd. (OTPC) shall implement integrated power generation and transmission project. The proposed financial structure of OTPV is as follows:
IL&FS : 26%
GoT : 0.5%.
Balance 23.5% stake to be tied up with suitable investors.
ONGC Board has accorded investment approval of Rs. 576.63 crore for a total project cost of Rs. 3844.17 crore based on Debt: Equity ratio of 70:30 and ONGC's equity contribution of 50% of OTPC.
Foundation stone for the project has been laid by Hon'ble Prime Minister of India on 29.10.2005 at Pallatana.
Plant finalized at Pallatana in Tripura. Gas allocation from MoP&NG obtained. 196 acres of land acquired alongwith MoEF clearance in respect of forest land.
State Support Agreement signed with Govt, of Tripura alongwith with sales Tax Exemption on Gas sales by ONGC to OPTC. Water allocation from nearby river Gumti obtained. Clearance of Tripura Pollution Control Board obtained.
Clearance from Tripura Pollution Control Board obtained. MoEF clearance obtained. Approval for stack height clearance obtained from AAI. NOC from Ministry of Defence obtained.
Progress in tendering for generation Project:
Tender sale has been closed for generation. Pre-bid meetings held with prospective bidders. Last date of bid submission was 14th August, 07 project completion in 45 months from Notice of Award.
Agreements/issues under finalization:
Gas supply Agreement between ONGC and OPTC.
Power Purchase agreement with PTC.
The entire project is scheduled for commissioning by 3rd Quarter of 2011.
Issues Requiring Attention:
Total Project cost is Rs. 3844.17 crore. Based on Debt: Equity ratio of 70:30 ONGC's equity contribution of 50% to OTPC amounting to Rs. 576.63 crore which has been approved by ONGC. However 23.5% stake in the project is yet to be tied up with suitable investors.
Gas supply agreement between ONGC and OTPC is yet to be finalised.
Power purchase agreement with Tripura Power Corporation yet to be firmed up.