The Hindu Business Line : ONGC to raise Rs 230 cr from N-E region for power transmission SPV

NEPTC is a special purpose vehicle floated by ONGC and Power Grid Corporation of India Ltd to create Rs 1,600-crore power-transmission infrastructure to feed the power generated by ONGC Tripura Power Ltd (OTPL) to national grid. Financial closure of the transmission project is due in October.

The transmission project, along with the power generation venture, will be financed through the prescribed 70:30 debt-equity ratio. ONGC and PGCIL will hold 26 per cent each out of a projected paid-up equity capital of Rs 480 crore in NEPTC. The remaining 48 per cent will be raised through private placement to existing investors in the region.

Sources said that investors in North Eastern States enjoyed special fiscal benefits on condition that 50 per cent of the accrued benefits are ploughed back into the region. A number of investors in the North Eastern region have reportedly expressed an interest in picking up a stake in the transmission company.

Meanwhile, ONGC is expecting Power Trading Corporation (PTC) to pick up 11 per cent stake in ONGC Tripura Power. As North Eastern States are unlikely to consume more than 100 MW, PTC has entered into MoUs with power utilities in Delhi, UP and MP for wheeling bulk of the generation to power-starved Northern India. Among the States, Delhi has expressed an interest in consuming up to 200 MW a day.

OTPL equity is currently held by IL&FS (50 per cent), ONGC (26 per cent) and the Tripura Government (24 per cent). Future equity participants in the project are expected to reduce IL&FS's equity exposure in the generation company, which will be under ONGC's operational control.

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