ONGC nod to Rs 3700 cr investment

Oil exploration major Oil and Natural Gas Corporation (ONGC) has approved investment of over Rs 3,700 crore in a slew of projects. This includes an investment of Rs 576 crore as equity in the Rs 3,844 crore, 740 mw gas-based power project in Tripura and another Rs 1,817 crore in augmentation of gas production in the state to feed the power plant, a company statement said.

The Tripura power project is being financed in the debt-equity ratio of 70:30 and the plant is scheduled to be commissioned by 2010. "This integrated project will enable ONGC to harness its gas potential in the state through 'Gas-to-Wire' concept, catalysing significant development in the North-Eastern region," according to the statement.

The country's largest upstream company will also pump in another Rs 795 crore over and above the Rs 3,195 crore already approved in development of the C-Series fields in the western offshore and another Rs 355 crore in building seven pipelines in Bombay High North field.

"These seven pipelines are essential for realisation of full potential from Bombay High (North) and shall be connected to the upcoming MHN Complex (facilities).

ONGC said Rs 1,817 crore would be invested in developing upstream facilities to raise gas production from Tripura to 4.5 million cubic meters (mmscmd) per day from the current 1.45 mmscmd. The incremental gas will be supplied to the 740 mw power plant being built by ONGC Tripura Power Company, in which the state-owned company has 50 per cent stake.

The company also approved the construction of an energy-efficient, green, intelligent and barrier-free office building (in around 32,000 sq mt) at Rajarhat in Kolkata at an investment of Rs 228 crore.