According to state power department sources, the plant would be constructed on BOT basis for which offers have been sought from private companies or hydro-electric power corporations.

The project cost is estimated at Rs 35.64 crore and the government offers several incentives to the prospective investors, the sources said.

The government is offering various incentives including back of electricity at negotiable rate and arrangement of land by the state government.Meanwhile, the proposed 100 mw thermal power station, for which the government floated tender in December, received lukewarm respond from the private investors.

Only a Mumbai-based company has shown interest in the project, additional chief engineer (power) S I Longkumer said, adding the company sought more time to study the pros and cons of the naphtha/gas fired plant to be located at Dimapur.