Neepco gets Rs 3,750 crore, 750 MW project

The union power ministry is likely to hand over the ownership of 750 megawatt (Mw), Rs 3,750 crore combined gas-based power project in Tripura to North Eastern Electric Power Corporation (Neepco) because of its core competency in operating power plants in the region.

ONGC was also eyeing a stake in the same project because it has agreed to supply gas to the plant.

Meanwhile, Bharat Heavy Electrical Ltd (Bhel) has emerged the only bidder for the project and has quoted Rs 5 per Mw for its three 250 Mw units. Cost of installation being on the higher side, the power ministry has very recently asked Bhel to justify the prices quoted for the plant.

Sources in Bhel said that civil construction would have to be huge and the soil condition at the site was very bad which would require additional investment in the form of readying the base for setting up the plant.

Oil and natural gas major ONGC would be supplying gas to this power plant which would be set up by Bhel. Sources close to the development said that ONGC was keen on acquiring a stake in the plant and had decided to pick up 26 per cent of the Tripura government's stake. "Reason behind ONGC asking for a stake in the project was because of its decision to supply gas to the plant. The ministry however very recently reversed its view and has asked ONGC to stick to its core competency of supplying gas to the plant once the project was complete," explained sources.

Neepco being from the region was also in the race for picking up a stake in the plant and the ministry seems to have favoured this north east based plant for its experience in running power plants in the region.

A crucial meeting of high level monitoring committee on production and utilisation of natural gas in Tripura was held in New Delhi sometimes back.

The meeting, chaired by Union Minister of State for Petroleum and Natural Gas also removed the hurdles over the supply of natural gas by the ONGC beyond eight years.

Neepco was also looking at the possibility of supplying surplus power to Bangladesh. The north east based power company would supply power generated in Monarchak to Punjab, Delhi, Haryana and West Bengal besides Tripura through the national grid.

A transmission line (400 KV) from the National Grid would be extended from Southern Assam.

ONGC has found natural gas in Tripura in huge quantities and already agreed to supply the required gas to the proposed power project.

Bidding for power

Bharat Heavy Electrical Ltd (Bhel) has emerged the only bidder for the project

It has quoted Rs 5 per Mw for its three 250 Mw units

Cost of installation being on the higher side, the power ministry asked Bhel to justify the prices quoted for the plant