ONGC board clears Rs 3,540-cr projects

The board of directors of ONGC clears investments of over Rs 3,540 crore in several projects, including the 740-MW Tripura power project, reports Deepak Joshi.

business Updated: Apr 12, 2007 04:38 IST

The board of directors of Oil and Natural Gas Corporation (ONGC) has cleared investments of over Rs 3,540 crore in several projects, including the 740-MW Tripura power project.

The board, which met on Tuesday, gave its nod to development of upstream facilities to produce gas to the tone of incremental 3 million metric standard cubic metres per day (MMSCMD). This will result in raising the production from the current level of 1.45 MMSCMD at an estimated cost of Rs 1817 crore, the company said on Wednesday.

Other projects include fast-track exploration and development of gas resources through intensive drilling and setting up surface infrastructure for supplying the gas to the Tripura power plant. ONGC will hold 50 per cent equity in the project.

The board also approved ONGC’s equity investment in ONGC Tripura Power Company Pvt Ltd. In the overall investment of Rs 3,844 crore towards the integrated power generation and transmission project with a debt-equity ratio of 70:30, ONGC’s investment works out at Rs 576 crore. The upstream and downstream activities will be progressively stepped up and the power plant is scheduled for commissioning by 2010.

This integrated project will enable ONGC to harness its gas potential in the north-eastern state through the ‘Gas-to-Wire’ concept, and it expects to initiate significant development in the region.

ONGC will invest Rs 355 crore in construction of 7 pipelines in Mumbai High (North).

The board also approved an incremental investment of Rs 795 crore for ‘C-Series’ development project, which is under implementation for exploitation of 15.14 billion cubic meters of gas along with 6.13 million cubic meters of condensate from the marginal fields in the Arabian Sea.

The board also approved the construction of an energy-efficient, green, intelligent and barrier-free office building at Rajarhat in Kolkata at an investment of Rs 228 crore.

First Published: Apr 12, 2007 04:25 IST