50-MW LNG plant to be built in Andaman by NTPC

Date:

The Andaman and Nicobar (A&N) islands will become green as state-run NTPC Ltd prepares to invite bids for a floating micro-liquefied natural gas (LNG) facility, according to two sources. The enhanced infrastructure will allow India to implement its objectives to protect the strategic edge the islands give in the Indian Ocean.

The FSRU will assist Hope Town, South Andaman, generate 50 MW of energy, enough to power the islands and replace the present diesel-powered expensive power generation. Improved infrastructure would help India control its borders and trade lines as China expands its naval reach. A&N has India’s sole tri-service command in the world’s busiest shipping route. Unnamed sources indicated the offer will be released soon.

Currently, the island’s ACS-ARR for diesel-generated power is roughly Rs.17 per unit, with the government subsidizing the difference. LNG-generated power is projected to be roughly Rs.5 per

unit. On December 30, 2018, Prime Minister Narendra Modi laid the foundation stone for a 50 MW LNG-based power facility. The plant will be built by NTPC Vidyut Vyapar Nigam (NVVN), an NTPC subsidiary.

Sunday night emails to an NTPC spokeswoman went unanswered. NTPC has 62,110 MW of installed capacity across 70 power plants, roughly a fifth of India’s 370 GW installed capacity (GW). The islands have a coordinated strategy to project India’s influence in the area and beyond, including expanding naval air stations and developing a railway route from Port Blair to Diglipur on North Island.

To create bridges and roads in the Andaman and Nicobar Islands, the state-run National Highways and Infrastructure Development Corp. Ltd (NHIDCL) has been charged with an investment of roughly Rs3,000 crore.

The NDA administration aims to build and repair ships on A&N islands. Construction of an undersea optical fiber connection between Chennai and Port Blair is also underway. The government also aims to expand its transit fleet to better connect the mainland and the islands.


Published By: Bhavya Dedhia

Sahiti Annam
Sahiti Annam
Sahiti is a Law student pursuing BBA.LLB at Symbiosis International University, Pune. She also holds a Diploma in International Business laws & Indian Corporate Laws. Her primary interest areas are Bankruptcy Laws, Company laws, Blockchain & Data Protection Laws, Banking Laws, and Laws relating to Intellectual Property Rights. Having been a professional lawn tennis player and an avid sports enthusiast, she is capable of handling her wins and losses well. Her adaptability makes her an excellent team player.

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