The government on Friday approved the setting up of a 100 MW gas-based power project at an investment of Rs 421.01 crore in Tripura.
"The 100 MW gas-based project in Tripura would be implemented by North Eastern Electric Power Corporation Limited (NEEPCO) at an estimated cost of Rs 421.01 crore, including interest during construction (IDC) of Rs 27.47 crore at December, 2008 price level," Home Minister P Chidambaram told reporters.
The Cabinet Committee on Economic Affairs approved the project at debt equity ratio of 70:30. The equity investment would come from NEEPCO's internal resources whereas the debt requirement would be met through commercial borrowings.
"The approval of this project is given in the backdrop of considerable increase in the energy consumption pattern in Tripura. The consumption is expected to increase further due to industrialization in the state," Chidambaram said.
"With the addition of this power station, it is expected that power position in the state shall improve considerably. After meeting the requirement in the state, there may be exportable surplus", he added.
The project is scheduled for commissioning within 30 months from the date of investment approval. The entire power generated from project would be allocated to Tripura.