AGARTALA, June 10 (TIWN): ONGC’s 2nd thermal unit at Palatana unlikely to be operational this year said official sources. As per Memorandum of Understanding (MoU) with OTPC(Oil and Natural Gas Corporation - Tripura Power Company) ONGC will supply 2.6 million of gas to both unit of Palatana said an ONGC official, as per MOU 1.6 million gas will be supplied to 1st unit and remaining 1 million to 2nd unit.

But OTPC is demanding more gas for operating the 2nd unit of Palatana, but ONGC wants modification of the MoU as per present global market price for supplying additional gas.OTPC signed a gas sale and purchase agreement with ONGC for supplying 2.65 million metric standard cubic meters gas per day. The agreement would be valid for 15 years against the assumed power plant’s life span of 25 years, with a provision of further extension by another 10 years.

The first unit of the project announced commercial production from January 04, 2014. The unit with an installed capacity of generating 363.3 MW is currently generating its full capacity. The plant’s first unit is capable of injecting 8.7 million units of power per day in the grid. The Central Electricity Regulatory Commission (CERC) granted provisional tariff for the first unit.

The Ministry of Power allocated over 85 percent of the total power generated from the plant to the beneficiary states of the region Assam is scheduled to get 240 MW, Tripura is entitled to get 196 MW out of the entire production; 79 MW for Meghalaya; 42 MW for Manipur, 27 MW for Nagaland and 22 MW for each of Arunachal Pradesh and Mizoram. 98 MW of the entire production was allocated for merchant sales under OTPC authorization.