FM rejects Tripura govt's plea

Agartala, Aug 11 (UNI) The Union Finance Ministry has rejected Tripura government's plea for 90 per cent subsidy for the Baramura Gas based power generating project.

In a recent letter to state power minister Manik Dey, Union Finance Minister P Chidambaram had specifically mentioned that his ministry could not grant 90 per cent subsidy for the 21 MW Baramura gas thermal project in Tripura's West District.

The letter said, ''As you may be aware, the Ministry of Finance has consulted Ministry of Power in the matter, and, the considered view is that there is no case for a 90 per cent subsidy for such projects, in view of their intrinsic financial viability. If the Government of Tripura is interested in developing this project, it should be possible to call for tariff based competitive bids from private sector developers offering the existing allocation of gas at Baramura. Alternatively, the project would be implemented by Government of Tripura on a 70:30 debt-equity ratio. At best, NEC may consider providing 30 per cent grant by way of equity support to Government of Tripura, with the balance 70 per cent of project cost being raised by Government of Tripura as a commercial loan''.

Speaking to the UNI, the state Power Minister alleged that this was another ploy of the Centre to deprive the NE states of their rights.

''How can a poor state like Tripura bear the burden of 70:30 debt-equity ratio?'' questioned the Minister. He further added that the gas based thermal power project would provide 5 per cent electricity each to the state of Mizoram and Manipur. ''It is nothing but a ploy of the Finance Ministry to deprive the NE of their rights,'' said Mr Dey.

It may be mentioned that the Development of North Eastern Region (DoNER) Ministry has requested the Finance counterpart to consider the approval of the 21 MW Baramura Gas Based Project on the basis of 90 per cent grant and 10 per cent loan.

UNI PD KK RN1429