Oil and Natural Gas Corp (ONGC) has tied-up Rs 2,224 crore debt from Power Finance Corp (PFC) for its proposed 700 MW power plant at Tripura.
PFC will provide a term loan of Rs 2,223.8 crore to ONGC Tripura Power Co Ltd, a joint venture of ONGC, IL&FS and the Government of Tripura which is setting up the 2x363.3 MW gas based power plant at Pallatana in Tripura.
PFC signed the agreement with OTPC for financing the project earlier this week, PFC said in a statement here.
The project will be commissioned in March 2012 at an estimated cost of about Rs 3,400 crore.
The EPC contract for implementation of the project was awarded to Bharat Heavy Electricals Ltd (BHEL) in August 2008.
The project will use natural gas from ONGC's fields in Tripura for generating electricity. About 87 per cent of the power generated will be sold to all the North East states.
PFC said electricity generated at the power plant would be evacuated through a 656 km long line from Pallatana to Bongaigaon in Assam to be constructed at an estimated cost of Rs 1,770 crore.
This line would be implemented by North East Transmission Co Ltd (NETC), an special purpose vehicle jointly promoted by OTPC, Power Grid Corp and all the North Eastern states.
Financial closure of the transmission scheme was achieved last year, with NETC signing a term loan agreement with PFC for Rs 1416 crore.