Asian Development Bank (ADB) will be supporting Tripura government to undertake a major power sector revamp in the northeastern state.
According to information available, the overall project will cost Rs.2,275 crore out of which Rs.1,820 crore (or $220 million) will be financed by ADB as loan. The remaining Rs.455 crore will come from the Tripura state government.
The project officially termed as “Tripura Power Distribution Strengthening & Generation Efficiency Improvement Project” was approved by ADB on November 10, 2022. The ADB loan takes effect from January 31, 2023.
According to information available from ADB and other trusted sources, the project is aimed at improving energy security, quality of supply, efficiency, and resilience of power sector in Tripura. The project will finance the replacement of aging 63-mw open-cycle gas-powered Rokhia power plant with a highly efficient 120-mw combined-cycle gas power plant that will reduce greenhouse gas emission through fuel saving.
The project also envisages investments in the power distribution network to increase generation capacity, efficiency, and resilience of the power sector against climate change and natural disasters. The project is expected to benefit 6-7 lakh consumers and is also expected to generate employment opportunities for around 7,000 people.
Apart from replacing the antiquated Rokhia power plant discussed above, the project would also include:
The project will be executed by two state government entities – Tripura Power Generation Ltd (TPGL) and Tripura State Electricity Corporation Ltd (TSECL)
Also read: Tripura Pilot Smart Grid Project Under IPDS Terminated
According to a project report by Asian Development Bank, this project could generate business opportunities for both consultants and equipment suppliers. Three consultants are expected to be engaged in the project, respectively for (a) implementation and monitoring of the project; (b) preparing distribution sector roadmap for TSECL; and (c) preparing a financial roadmap for TSECL and TPGL.
On the equipment side, the project would need seven procurement packages including six for the power distribution-related components and one on the generation side.