Government of Tripura (GoT) was desirous of developing a power project to enhance the utilization of natural gas in the state. With this end in view, GoT approached Infrastructure Leasing and Financial Services Limited (IL&FS) to assist them in the entire process of project development. ONGC owns majority of the gas assets in Tripura and has made significant investments in the state. However, on account of non-availability of gas off-take arrangements, its assets had not yielded returns adequate to sustain or expand operations in the region. IL&FS initiated discussions with ONGC to explore the feasibility of developing a gas based power project in the state.
A Memorandum of Agreement (MoA) was signed between ONGC and IL&FS on July 10, 2004 to undertake development of a gas based power plant in Tripura by incorporating Public-Private-Partnership (PPP) framework. Subsequent to this, a MOA was signed between GoT and IL&FS on August 2, 2004 for undertaking development and implementation of a natural gas based combined cycle gas turbine in Tripura.
OTPC entered into a State Support Agreement ("SSA") with the GoT on January 15, 2007 for the development of the Project. GoT has been very supportive and has extended help as required for successful implementation of this complex and challenging project.