Sri Vijaya Puram, July 21:The Ministry of Power, Government of India on 16.06.2026 has accorded approval for the Power Purchase Agreement (PPA) and Gas Supply Agreement (GSA) for establishment of a 50 MW LNG-Based Power Project including Floating Storage Regasification Unit (FSRU) at Hope Town, Sri Vijaya Puram.
As a significant step towards implementation of this landmark project, the Power Purchase Agreement (PPA) and the Land Use Right Agreement (LURA) between the Electricity Department, A&N Administration, and NTPC Vidyut Vyapar Nigam Limited (NVVN) and Gas Supply Agreement between NTPC and IOCL were signed today at Sri Vijaya Puram in the presence of the Chief Secretary, A&N Administration at Secretariat.
The ceremony was attended by Ms. Renu Narang, Chief Executive Officer, NTPC Vidyut Vyapar Nigam Limited (NVVN); Mr. Prasun Kumar Mishra, Country Head (Gas Business), Indian Oil Corporation Limited (IOCL); and senior officers from the A&N Administration, IOCL, NVVN and NTPC.
The proposed 50 MW LNG-Based Power Project will be established at Hope Town, Sri Vijaya Puram, as a Floating Storage and Regasification Unit (FSRU) based Liquefied Natural Gas (LNG) Power Project. For this purpose, the Andaman & Nicobar Administration has already allotted 0.82 hectare of land at Hope Town. The LNG receiving, storage and regasification infrastructure required for the project will be developed by Indian Oil Corporation Limited (IOCL). The project is targeted for commissioning by August 2028.
50 MW LNG-Based Power Project marks a historic milestone being one of the most significant power infrastructure initiatives undertaken to strengthen the long-term energy security of Sri Vijaya Puram in the A&N Islands in recent years. The project represents a transformational shift in the power sector of the Islands by introducing clean and efficient LNG-based generation. Upon commissioning, it will substantially reduce dependence on diesel-based generation resulting in lower fuel costs, improved operational efficiency and reduced environmental impact. It will also enhance grid stability, improve reliability of power supply, provide adequate reserve generation capacity and meet the increasing electricity demand arising from urban growth, tourism, commercial activities and future developmental projects in Sri Vijaya Puram.
The approval of the PPA reflects the Government of India’s continued commitment towards strengthening the infrastructure in the A&N Islands and ensuring sustainable development of this strategically important Union Territory. The project is expected to usher in a new era of reliable, resilient and environmentally responsible power supply for the Islands.
The Electricity Department expresses its sincere gratitude to the Ministry of Home Affairs, Ministry of Power, NTPC, NVVN, Indian Oil Corporation Limited (IOCL) and all other stakeholders whose guidance, support and coordinated efforts have enabled this prestigious project to reach this significant stage. The execution of the PPA, GSA and LURA represent a major step towards the timely implementation of the project and reaffirms the commitment of the A&N Administration to providing a modern, reliable and sustainable power infrastructure for the people of the Andaman & Nicobar Islands.
