Author: PPD Team Date: 10/04/2025
NTPC Vidyut Vyapar Nigam (NVVN), a wholly owned subsidiary of NTPC Limited, is moving ahead with plans to set up a 50 MW thermal power project at Hope Town, located in Ferrargunj tehsil in South Andamans district of the Andaman and Nicobar Islands. The investment for this project is approximately Rs 4 billion.
The project will consist of five units of 10 MW each. It will primarily run on regasified liquefied natural gas (RLNG) with high speed diesel (HSD) as the alternate fuel. Initially, the plan was to develop a 55 MW capacity. However, it has now been revised to 50 MW.
To identify the right location for the project, NVVN considered three sites. After evaluating various technical and environmental factors, the site near Hope Town was found to be the most suitable for setting up the dual-fuel power project.
Fuel requirements for the plant will be supported by the proposed LNG terminal and a floating storage regasification unit (FSRU) at Hope Town. HSD will be supplied by Indian Oil Corporation Limited (IOCL) from its existing oil depot.
The power plant will use sea water to meet its operational needs. About 8 kilolitres per day (kld) of fresh water will be required for the cooling and service water systems.
The land needed for the project is just 2 acres. It is government land already under the possession of the Andaman & Nicobar administration. No forest land is involved.
The Ministry of Power (MoP) gave its principal approval for the project on March 13, 2018.
The foundation stone for the project was laid by the Government of India on December 30, 2018.
NVVN then invited bids on May 23, 2019, for the engineering, supply, construction, erection, testing, and commissioning of the project. This was to be done on a single-point responsibility basis. The last date for bid submission was first set for August 14, 2019, and then extended to August 21, 2019. Lakdhanavi Limited and Wartsila India Private Limited submitted bids. However, the process was cancelled in December 2019.
In the meantime, the Ministry of Environment, Forest and Climate Change (MoEFCC) granted the Terms of Reference (ToR) for a 55 MW project on October 22, 2019. The original application was filed on November 1, 2018. Later, on August 9, 2019, NVVN submitted a request to amend the ToR to allow the use of diesel as an alternate fuel. The expert appraisal committee (EAC) reviewed this in its meeting on August 23, 2019, and agreed to the amendment. The updated plan allowed the use of HSD as a pilot fuel along with RLNG, with HSD usage capped at one percent.
In February 2021, the EAC recommended environmental clearance (EC) for the project. The formal proposal was submitted in December 2020. MoEFCC later recommended both environmental and coastal regulatory zone (CRZ) clearance in July 2022. The final environmental clearance was granted on September 19, 2022.
The project bidding process resumed on December 27, 2024, when NVVN invited new bids for setting up the power plant. The deadline for submission was set for March 5, 2025.
Another bid invitation was issued on January 11, 2025, for the civil works package of the project. This too had a deadline of March 5, 2025. The scope includes extensive tasks such as topographical surveys, geotechnical investigations, site clearance, and leveling. Contractors will be responsible for preparing design documents, constructing all civil, structural, and architectural components, and supplying materials. The work also covers excavation, dewatering, concreting, plastering, roofing, wall cladding, steel structure fabrication, and installation of prefabricated structures.
By setting up a reliable LNG-based power plant in the Andaman and Nicobar Islands, India reduces its dependence on diesel shipments, which are logistically complex and vulnerable to disruption. The islands are located close to the Malacca Strait, a critical global trade route. A stable power supply supports not just civilian life but also strategic and military operations in the area, particularly the Andaman and Nicobar Command—India’s only tri-service military command. As China’s presence grows in the Indian Ocean—through ports, naval movements, and maritime infrastructure—India’s effort to boost infrastructure, including energy, in this region helps secure its own strategic position and ensures it can respond effectively to regional developments. This power project is one part of that broader strategy.
With key environmental and regulatory clearances now in place and the bidding process underway, the project is moving into its implementation phase.
Featured photograph is for representation only.