ONGC-NEEPCO sign GSA for Tripura power proj

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ONGC
Agartala, June 06: The Tripura government has lauded the achievement of the Oil and Natural Gas Corporation Ltd (ONGC)-backed 104 MW gas-based power station run by the North Eastern Electric Power Corporation Ltd (NEEPCO) at Monarchak in south Tripura.

State Power Minister Manik Dey told UNI here today that the ONGC will provide the supply for the NEEPCO gas power station and both the organisations had signed the first agreement at market price in New Delhi yesterday. According to the agreement, the ONGC would supply 0.5 million cubic metres gas per day for a period of 15 years to the gas-based power station of NEEPCO coming up at Monarchak.

The agreement assumes significance as it is the first agreement to be signed by the ONGC at market price in Tripura.

The NEEPCO plans to produce 104 MW of power by the end of 2010 from this combined cycle power plant, Mr Dey said.

A Gas Supply Agreement (GSA), formalising this, was concluded in New Delhi between the two parties yesterday while the Term Sheet, which was signed on March 25, has now been regularised with this agreement, the minister added.

Meanwhile, ONGC officials said the GSA was signed by ONGC Director in-charge of Marketing N K Mitra and NEEPCO Director (Finance) M R Ghosh.

Under the agreement, the ONGC would begin the supply of gas, for 15 years, from the date of first drawal, slated by September 25, 2010, within 30 months from the date of signing of Term Sheet.

The ONGC would be transporting gas from its various new fields in Tripura, including Sonamura, Tichna and Sundalbari, and deliver at the fence of the NEEPCO's Monarchak project.

Expressing happiness over the GSA, the NEEPCO officials said they were keen to participate in the ONGC's Palatana Power venture and may even chip in with equity, if given an opportunity.

The ONGC officials hoped that the long association between both the organisations in the North-East would be reinforced with this agreement and it would also help in the development of the power-starved region.


UNI

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