Agartala: The Oil and Natural Gas Corporation (ONGC) in collaboration with Infrastructure Lease and Finance Services (ILFS) will set up a 750 MW gas-based mega power project in Tripura, the biggest ever in North-east, ONGC chairman Subir Raha said.

The ONGC, the second largest power generation group after NTPC (National Thermal Power Corporation) in the country, would set up the Rs 3500 crore project for maximum utilisation of the gas available in the State, Raha told reporters in Agartala yesterday (Dec 5, 2004).

Presently only one third gas production potential of the State was being utilised and the rest was lying untapped because of the "lack of interest on the part of public sector and private sector companies which were given gas allocation rights to set up facilities," Raha said. " Seeing the lack of interest on the part of the companies, the Ministry of Petroleum and Gas cancelled all allocations and advised the ONGC to take steps to realize 100 percent gas potential in Tripura," the chairman said.

An ONGC delegation led by its chairman, met Chief Minister Manik Sarkar who assured them of all possible help and cooperation for identification of land, provision of utilities and execution of the project.

The ONGC chairman said initially it has been decided to set up the power project at Palatana in South Tripura district.

The project was expected to generate increased revenue, three times the current level, for the State Government in the form of royalties and sales tax.