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:

ONGC :50%

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.

Project Status:

Progress in tendering for generation Project:

Agreements/issues under finalization:

The entire project is scheduled for commissioning by 3rd Quarter of 2011.

Issues Requiring Attention: