Sri Vijaya Puram, Sept. 10: The long-awaited 50 MW LNG-based power project at Hope Town, Sri Vijaya Puram, has entered the implementation phase after the award of key engineering and civil contracts, marking a major step towards strengthening electricity supply in South Andaman.
The Electricity Department of the Andaman and Nicobar Administration announced that NTPC Vidyut Vyapar Nigam Limited (NVVN), the project implementation agency, issued the Letter of Award (LoA) for both the Engineering, Procurement and Construction (EPC) package and the Civil package on August 28, 2026. The awards pave the way for the commencement of project execution.
The development follows the signing of the Power Purchase Agreement (PPA) between NTPC Limited and the Andaman and Nicobar Administration on July 21, 2026, which laid the contractual foundation for the project to move into the execution stage.
According to the Electricity Department, the LNG-based power plant is scheduled to be commissioned within 28 months from the date of award of the EPC package.
Once operational, the project is expected to significantly improve the reliability, efficiency and sustainability of electricity supply in South Andaman. The plant will replace a substantial share of existing diesel-based power generation with cleaner and more economical LNG-based generation.
The administration said the shift to LNG is also expected to reduce the cost of power generation while strengthening the islands’ long-term energy security.
The 50 MW project has been identified as a key initiative to modernise power infrastructure in the islands and support a more sustainable electricity generation system. The commencement of the implementation phase marks the transition of the project from planning to on-ground execution.
The Electricity Department acknowledged the support received from the Ministry of Home Affairs, the Ministry of Power, NTPC Vidyut Vyapar Nigam Limited (NVVN), Indian Oil Corporation Limited (IOCL) and other stakeholders for their guidance, cooperation and coordinated efforts in advancing the project to the implementation stage.
The department said it remains committed to extending all necessary support to ensure the timely completion and commissioning of the LNG-based power plant in accordance with the project schedule.
