Port Blair: In a landmark move set to transform the power landscape of the Andaman & Nicobar Islands, the A&N Administration on Tuesday signed key agreements for the establishment of a 50 MW LNG-based power project with a Floating Storage and Regasification Unit (FSRU) at Hope Town, paving the way for a cleaner, more reliable and sustainable electricity supply in the Islands.
The project will come up on 0.82 hectare of land at Hope Town, already allotted by the Administration. While the LNG-based power plant will be developed under NTPC’s framework, IOCL will establish the LNG receiving, storage and regasification infrastructure required for the Floating Storage and Regasification Unit (FSRU). The project is scheduled to be commissioned by August 2028.
The development follows the Ministry of Power, Government of India’s approval, accorded on June 16, 2026, for the Power Purchase Agreement (PPA) and Gas Supply Agreement (GSA) for the ambitious project.
Marking a significant milestone in its implementation, the Power Purchase Agreement (PPA) and Land Use Right Agreement (LURA) were signed between the Electricity Department, A&N Administration and NTPC Vidyut Vyapar Nigam Limited (NVVN), while the Gas Supply Agreement (GSA) was signed between NTPC and Indian Oil Corporation Limited (IOCL) at the Secretariat in the presence of the Chief Secretary, A&N Administration.
The signing ceremony was attended by Ms. Renu Narang, Chief Executive Officer, NVVN, Prasun Kumar Mishra, Country Head (Gas Business), IOCL, along with senior officials from the A&N Administration, NTPC, NVVN and IOCL.
Once operational, the 50 MW LNG-based facility is expected to significantly reduce the Islands’ dependence on costly diesel-based power generation, resulting in lower fuel costs, improved operational efficiency and a substantial reduction in carbon emissions. It will also strengthen grid stability, enhance the reliability of electricity supply and provide the reserve generation capacity needed to meet the growing demand driven by urban expansion, tourism, commercial activities and future development projects in Sri Vijaya Puram.
Describing the project as one of the most significant power infrastructure initiatives undertaken in recent years, the Administration said it would usher in a new era of resilient, environmentally responsible and sustainable energy for the Andaman & Nicobar Islands. The Electricity Department expressed gratitude to the Ministry of Home Affairs, Ministry of Power, NTPC, NVVN, IOCL and other stakeholders for their support in taking the prestigious project to this crucial stage.
