Govt approves revised estimates for power project in Tripura

The government today approved revised cost estimates of 100 MW gas-based power project in Tripura, amounting to Rs623.44 crore.

A meeting of the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Manmohan Singh, approved the revised estimates, an official statement said.

The statement added that power generated from the project at Monarchak in West Tripura will be supplied to the state and will be commissioned by June, 2013.

"It would contribute to the economic development of the state by providing 100 MW power and direct and indirect employment to the local population," the statement further said.

The revised cost estimates of the project, being constructed by North Eastern Electric Power Corporation Limited (NEEPCO), includes interest amount of Rs51.09 crore during construction at November, 2009 price level.

The project is being developed with a debt-equity mix of 70:30.

"While the equity portion shall be met through NEEPCO's internal resources, the debt portion shall be arranged through commercial borrowings," the statement said.

Besides this, the government also expects that the project will also mitigate the problem of power shortage in the North-Eastern region and the consequent need for import of power particularly during the winter seasons, the statement added.