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Tripura minister calls for re-launch of power system development fund for Northeast

Tripura minister calls for re-launch of power system development fund for Northeast

Tripura Power Minister Ratan Lal Nath has called for the re-launch of the Power System Development Fund for North Eastern states. He highlighted the financial strain due to rising gas prices and urged central assistance for power infrastructure projects.

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Tripura Power Minister appeals for re-launch of Power System Development Fund Tripura Power Minister appeals for re-launch of Power System Development Fund

Tripura Power Minister Ratan Lal Nath on Tuesday (July 9) advocated for the re-launch of the Power System Development Fund in the North Eastern states. 

At the recent North Eastern Power Ministers' conference held in Guwahati, Tripura's Power Minister, Ratan Lal Nath, appealed to the Central Government for enhanced cooperation in the state's power infrastructure reform and development. 

Drawing the attention of Union Power Minister Manohar Lal Khattar, who was present at the meeting, Nath underscored the drastic increase in gas prices purchased from GAIL for power generation. 

He said until 2022, the cost of gas was $2.90 per MMBTU, with a 40% subsidy for North Eastern states reducing it to $1.74 per MMBTU.

However, from 2022, the price surged to $6.10 per MMBTU and has now reached $6.50 per MMBTU. Nath requested the Union Ministries of Power and Petroleum to consider reducing gas prices to alleviate the financial burden on the state.

Requesting the re-launch of Power System Development Fund for NE, the power Minister emphasized on the Power System Development Fund which has been presently stopped in our country. Minister requested to start the fund for Northeastern states immediately, where the central group has assured that they will analyse the matter and will try to start the fund for NE States.

At the same time, he requested the Power Grid Corporation of India to consider including the CBIS component in the NERPSIP Project for setting up a state-of-the-art training center in Tripura.

Minister Nath also highlighted several infrastructure projects and requested the Union Ministry of Power bear all costs for the 400 KV Substation in Suryamnagar.

The Minister asked for central funding to cover Tripura's intra-state transmission needs until 2030, estimated at around Rs 1000 crore. 

Nath emphasized the importance of the National Hydro Power Corporation's pump storage project in Longtorai subdivision, with an 800 MW power generation capacity and urged for the speedy completion of this project and highlighted ongoing preparations of PFR and DPR.

The Minister addressed the critical shortfall in gas supply from ONGC's Tripura Asset, which has severely impacted the state's power generation. 

To maintain electricity supply, the state has been forced to purchase power from the open market, incurring substantial losses for TSECL. 

Nath expressed concern over the rising cost of electricity production, making it challenging to sustain affordable rates for residents. Additionally, the minister expressed concern about the rising costs of electricity production in the state.

He stated that it has become difficult to sustain affordable electricity rates, but it is also important to consider the needs of the people of the state and requested the cooperation of the Union Ministry of Petroleum and Natural Gas to reconsider the increasing price of gas under the APM system and urged the Union Power Minister to address this issue.

Edited By: Puja Mahanta
Published On: Jul 09, 2024