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State-run power utility GAIL (India) said on Wednesday that it has acquired 26 per cent equity in ONGC Tripura Power Company (OTPC), which owns and operates a 726.6 megawatt (MW) gas-based combined cycle power plant at Palatana in Tripura.
“The stake has been acquired from IL&FS Group companies namely, IL&FS Energy Development Company and IL&FS Financial Services. GAIL and IL&FS Group concluded the transaction on Tuesday by signing Deed of Adherence (DoA) to shareholders agreement of OTPC,” GAIL said in a statement.
The DoA was signed by GAIL Executive Director (BD, SD & CA) Santanu Roy, IEDCL CEO Feby Koshy and IL&FS Senior Vice President Santanu Sen on behalf of IFIN and in the presence of GAIL CMD Manoj Jain and IL&FS Executive Director Nand Kishore. Other shareholders of OTPC have also given their written consent to DoA, it added.
Bidding process
GAIL had participated in an open bidding process of IL&FS and had emerged as the successful bidder. Being an integrated natural gas company, the acquisition would be synergistic and would enable GAIL to stronghold its presence in 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. It has global presence and business interests in USA, Russia, Singapore, Myanmar, China and Egypt.
OTPC owns and operates a 726.6 MW (363.3 MW x 2) gas based combined cycle power plant in Palatana. Apart from 26 per cent equity acquired by GAIL from IL&FS Group, rest of the equity is held by ONGC (50 per cent), Government of Tripura (0.50 per cent) and India Infrastructure Fund GIP II (23.50 per cent).
OTPC also has 26 per cent equity investment in North East Transmission Company (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-fired power plant of OTPC.
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