ONGC increases gas price for Tripura projects

Agartala, Aug 2: Tripura's ongoing twin power projects Palatana and Monarchak received another setback with the increment in gas prices for both projects by Oil and Natural Gas Corporation (ONGC).

In a recent meeting, exploration giant ONGC increased the gas prices from Rs 3,200 to Rs 4,500 per cubic metre of gas in addition to proportionate royalty and Value Added Tax(VAT) with the new price.

ONGC broought up the price hike issue while speaking to Tripura Chief Secretary Shasiprakash today, official sources said here.

Northeastern Electrical Power Corporation(NEEPCO) launched the 540 MW Monarchak Project some five year back, which recently received financial clearance from the Centre to set up in West Tripura while ONGC started its 750 MW Palatana project in South Tripura in 2005.

According to official reports, Tripura received per cubic metre gas at a price of Rs 1,920 after deduction of 40 per cent subsidy offered by the Centre at present.

Sources said NEEPCO had agreed to accept the new price while Tripura State Electricity Corporation Ltd(TSECL), which is another beneficiary of the ONGC expressed concern over the abrupt gas price hike.

TSECL Chairman-cum-Managing Director Dipak Ganguly said that the production cost of per unit of power in Monarchak would go beyond Rs 2.50 if the authority accepts the new price of ONGC.

UNI