A gas-based power plant with a capacity of 50 MW is being set up at Sidubi locality in Assam's Cachar district.
An official of the Central Assam Power Distribution Company said the company has come to an understanding with the Oil and natural Gas Corporation Ltd (ONGC) for supply of the gas necessary for the project. He said the ONGC will supply gas for its Sonabarighat well near Silchar.
He said work has been started for the project, which is to come up on an area of 10 acres of government land. Work on the project will be completed within the next three years, the official said.
He said once the project is completed, the gap between demand and supply of power in Barak Valley will be substantially reduced. While the valley needs 100 MW of power daily, it gets less than half of this amount, causing a lot of inconvenience to people.
At present, Barak Valley has practically no source of power of its own. Private real estate company DLF had earlier started two power projects with the help of gas supplied by the ONGC from its nearest fields. But, after a few years, gas supply was stopped at both the projects, causing the power plants to shut down.
In 2009, BHEL, the Power Finance Corporation and the state government had signed a memorandum of understanding for setting up of a 250-MW thermal power plant at Digarkhal in Cachar district on an investment of Rs 1000 crore. But, the project is yet to see the light of the day as work is yet to start.
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