Kohima, Aug 25 (PTI) The Nagaland government on Friday signed a power purchase agreement with a Dimapur-based company that will produce electricity from a bamboo-fired plant.

The state government inked the pact with independent power producer Hutah Industries to buy electricity from its 10-megawatt biomass plant at AK Industrial Village in Ganeshnagar, according to a statement.

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Nagaland Power and Parliamentary Affairs Minister KG Kenye was present during the signing of the agreement.

Speaking on the occasion, Kenye lauded the company for taking up such initiatives and stressed the need to develop power generation in the state to meet demand as well as promote industrial activities.

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He also highlighted the need for internal power generation to reduce imports from outside.

Kenye advised that since the project is a bamboo-fired plant, a necessary tie-up should be explored with Nagaland Bamboo Development Agency (NBDA).

Such initiatives would also stimulate local employment, he said.

Hutah Industries CEO & CFO Aditya Pandit said the raw material for the bamboo-fired plant will be grown within the project area.

He said the project will be completed within 24 months, and 1,500 acres of land has already been leased by the firm for 25 years.

In his brief address, Power Department Engineer-in-Chief Moa Aier stated that several PPAs were earlier signed but "unfortunately the IPPs were not showing progress in the field".

He expressed hope that the PPA with Hutah Industries should be a trendsetter for a new beginning.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)