GAIL acquires 26% stake in ONGC Tripura Power Company
New Delhi, January 6, 2022
Public sector natural gas major GAIL (India) Limited has acquired 26% equity stake in ONGC Tripura Power Company (OTPC), which owns and operates a 726.6 MW gas-based combined cycle power plant at Palatana in Tripura.
The stake has been acquired from IL&FS Group companies -- IL&FS Energy Development Company Limited and IL&FS Financial Services Limited, a press release from GAIL said on Wednesday.
GAIL and IL&FS Group concluded the transaction on Tuesday by signing Deed of Adherence (DoA) to Shareholders Agreement of OTPC.
The DoA was signed by Santanu Roy, Executive Director (BD, SD & CA), GAIL, Feby Koshy, CEO of IEDCL and Santanu Sen, Senior Vice President, IL&FS on behalf of IFIN and in the presence of GAIL Chairman & Managing Director Manoj Jain and IL&FS Executive Director Nand Kishore. Other shareholders of OTPC have also given their written consent to DoA, the release said.
GAIL had participated in an open bidding process of IL&FS and had emerged as the successful bidder.
The company said that, being an integrated natural gas company, the acquisition would be synergistic and would enable it to strengthen its presence in the North Eastern region of the country.
GAIL is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG re-gasification, petrochemicals, city gas, renewables, E&P, etc. GAIL also has global presence and business interests in USA, Russia, Singapore, Myanmar, China and Egypt.
OTPC owns and operates a 726.6 MW (363.3 x 2) gas based combined cycle power plant in Palatana, Tripura. Apart from the 26% equity acquired by GAIL from IL&FS Group, the rest of the equity is held by ONGC (50%), Government of Tripura (0.50%) and India Infrastructure Fund GIP II (23.50%).
OTPC also has 26% equity investment in North East Transmission Company Limited (NETC), a joint venture of OTPC, Powergrid and States of North Eastern Region, formed with an objective to develop transmission line to evacuate power from the 726.6 MW gas-based power plant of OTPC.