Calcutta, May 9: The second phase of ONGC’s exploration work in Tripura is unlikely to take off before 2010.

According to Tripura chief minister Manik Sarkar, the first phase of the project had been completed and the public sector oil major had distributed whatever gas it had extracted.

Sarkar, who was in Calcutta to attend a Confederation of Indian Industry meet, said when ONGC started the project there were few takers. However, demand picked up later.

The Tripura chief minister said efforts were on to establish a link with the Chittagong port in Bangladesh by constructing a bridge across the Pheni river.

The distance to Chittagong would be around 72km.

“Gas, rubber and bamboo are the three pillars of growth in our state. I have met global investors for a mega methanol project in Tripura,” said Sarkar.

GAIL (India) Ltd has signed an agreement with Tripura Industrial Development Corp (TIDC) and Assam Gas Co Ltd (AGCL) to pick up 29 per cent stake in Tripura Natural Gas Co Ltd (TNGCL).

Sarkar said his government was cautious about big-ticket investments until they takes concrete shape and has informed company relying on gas source for its future growth in the state about the status of the ONGC project.

Way back in 1962, ONGC had started the geological mapping of Tripura and began drilling operations in 1972.

ONGC which had been contemplating an entry into the business of power generation in 2004 took up an equity participation of 26 per cent in the special purpose vehicle (SPV) floated by the government of Tripura (24 per cent) and Il&FS (50 per cent).

ONGC’s proposed 2X370 MW gas-based power station in Tripura had been already been facing transportation problems.

The transit of heavy plant equipment and machinery in the geographically rough terrain was proving to be a problem with the company finally deciding to use the Bangladesh route.

However with the proposed route falling out of the transit treaty pact would require special permission.

TIDC and AGCL would hold 10 per cent equity each while the public, financial institutions and others would pick up the remaining 51 per cent.

The Government of Tripura had decided in May 2004 that TNGCL would be the exclusive company to undertake retail gas distribution in the state.

“GAIL till recently was involved in distribution but now has been given a block for exploration in Tripura. We hope that their project will also meet with great demand