Khobal was selected as the site for setting up the project considering the close proximity to Khobal gas field from where natural gas (hydrocarbon) would be supplied, the official said.
Last year, ONGC had discovered huge gas reserves at Khobal near the Assam-Agartala National Highway (NH-44).
With the commissioning of the project, the demand for urea will be met not only for Tripura but also for the entire north-east region and a large chunk of the fertiliser could be exported to neighbouring Bangladesh, ONGC sources said.
Last year, Chief Minister Manik Sarkar had requested ONGC CMD Sudhir Vasudeva to set up a fertiliser manufacturing company in Tripura to ensure optimum utilisation of natural gas which was welcomed by ONGC, sources said.
Following the request, the ONGC had invited expression of interest for setting up a manufacturing unit and at least three big investors had expressed their interest.
The oil and gas major is already setting up a 727-MW gas based thermal power project in the state through ONGC Tripura Power Company (OTPC) at Palatana in Gomati district.
The ONGC has started supplying gas to the project on experimental basis and yesterday the turbine of one unit was made operational on an experimental basis and no problem was found.
The first unit of the power project (363 mg watt) is likely to generate power by next month.
