According to press release, the Cabinet Committee on Economic Affairs recently approved the implementation of the Tripura Gas Based Power Project, 100 MW (Nominal) + 20% in the State of Tripura in the Central Sector by North Eastern Electric Power Corporation Limited.

The estimated cost of the project would be INR 421.01 crore including interest during construction of INR 27.47 crore at December, 2008 price level. The project shall be funded with debt equity ratio of 70:30. The debt portion shall be met through commercial borrowing and the equity portion shall be met from internal resources of NEEPCO.

However, the project is scheduled for commissioning within 30 months from the date of investment approval. The entire power from the project would be allocated to the state of Tripura.

The energy consumption pattern in the State of Tripura has increased considerably which is expected to increase further due the industrialization initiatives taken by the Government of Tripura. With the addition of the approved power station, it is expected that power position of the state shall improve considerably.

After meeting the requirement in the State of Tripura, there may be exportable surplus during the initial period of operation which would mitigate the shortages in the region.