India’s state-run power utility NTPC has kicked off construction of the LNG-fueled power plant in Hope Town, South Andaman. 

The company said in its statement that the country’s prime minister Narendra Modi laid the foundation stoke for the 50-MW facility.

The project, being established by a unit of NTPC, NTPC Vidyut Vyapar Nigam, with have a 50 MW production capacity.

Construction costs for the projects aimed at providing power security to Andaman and Nicobar Islands is estimated at 3.87 billion Indian Rupees ($55.7 million).

The construction is scheduled for completion within 18 months following the contract award, the company’s statement reads.

The plant will be capable of running on LNG or high-speed diesel (HSD).

LNG will be sourced from a floating storage regasification unit (FSRU) and high-speed diesel will be sourced from Indian Oil Corporation’s (IOCL) existing depot at Andaman and Nicobar as per requirement, the company said.