Agartala, Nov 1 (IANS): State-owned ONGC's proposed gas-based fertiliser plant in Tripura would meet the growing shortage of urea in the eastern and northeastern States of India and neighbouring Bangladesh, Tripura Chief Minister Manik Sarkar said here on Wednesday.
ONGC in association with Tata Chemicals and the Tripura government would set up a Rs 5,000-crore plant in northern Tripura. "The Tripura government would share the 10 percent of the Rs 200 crore equity to be collected from various stake holders," Sarkar told reporters after a cabinet meeting.
The Tripura government has asked the district magistrates of north Tripura and Dhalai districts to select a suitable 800 to 1,000 acres of land for the proposed plant.
ONGC Chairman Sudhir Vasudeva held a meeting with Chief Minister Manik Sarkar in New Delhi recently and discussed the matter.
"The ONGC CMD informed the Chief Minister that Tata Chemicals has been chosen as the private partner to set up the fertiliser project in northern Tripura," a State Industry Department official told reporters.
The official said ONGC had initiated the process to set up the fertiliser plant to meet the growing shortage of urea, the commonly used soil manure in the northeastern region.
Tata Chemicals is the market leader in the urea and phosphatic fertiliser segments.
ONGC had earlier sought expression of interest from companies with relevant experience and track record to be a partner in the proposed gas-based fertiliser plant.
According to the official, it would take around 44-48 months to set up the plant after commissioning of the project.
The ONGC has also been setting up a giant gas-based 726 MW capacity thermal power plant at Palatana in southern Tripura to cater to the electricity needs of northeastern States.