Central power sector lender Power Finance Corporation (PFC) will provide financial assistance of Rs 3,640 crore for the ONGC?s maiden power generation project in Pallatana, Tripura. Of this, Rs 2,223.8 crore is meant for the generation facility while the rest will be used for financing implementation of the associated power transmission network. Agreements to this effect were recently signed by the two sides.
ONGC is implementing the gas-based power project as a joint venture with private developer IL&FS. While the generation project is estimated to cost Rs 3,400 crore, the transmission network would require an investment of Rs 1,770 crore.
ONGC expects to commission the power project by March 2012. The contract for the implementing the project has been awarded to Bharat Heavy Electricals Ltd (Bhel). Central transmission utility Powergrid will lay the power transmission network. Fuel requirement will be met from ONGC?s gas fields in the state. About 87% of power from the proposed plant will be supplied to the states in the north eastern region.