News APP

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  gplay

This article was first published 17 years ago
Rediff.com  » Business » ONGC to buy Tripura power project pie

ONGC to buy Tripura power project pie

Source: PTI
November 10, 2006 16:41 IST
Get Rediff News in your Inbox:

Oil and Natural Gas Corporation will take 50.5 per cent stake in the company that will set up the over Rs 2,000-crore (Rs 20 billion) Tripura power project and the associated transmission lines.

"We have changed the format of the 740 MW project. While earlier it was proposed that ONGC would set up the power plant and a separate company would implement the transmission link for evacuation of power from the plant, now we propose to do both the jobs through just one company," an official said.

ONGC would take 50.5 per cent stake in the company that will set up the power plant and the associated transmission lines, while IL&FS would take 26 per cent.

IL&FS would arrange investors for the balance equity. The project is estimated to cost around Rs 2087.6 crore (Rs 20.87 billion) and would be implemented by end of 2009.

The generated power will cater to the north-east demand and also be transmitted to Northern Grid to feed demand in north India. The official said instead of the earlier proposal of separate companies for the generation and transmission arms -- the generation project was meant to be on the balance sheet of ONGC whereas the transmission division was to be an independent company -- the two entities would now be integrated under one company.

"An integrated entity has the benefit of de-risking project6 implementation and operations," he said.

The power plant is ONGC's first mega 'Gas-to-Wire' project to monetize significant idle and stranded gas in the state. It will initially produce four million standard cubic meters per day and increase it to five mmscmd by boosting exploration.

Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Discussion Group.

Get Rediff News in your Inbox:
Source: PTI© Copyright 2024 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 

Moneywiz Live!