New Delhi, Jan 4 (PTI) State-owned gas utility GAIL (India) has completed the acquisition of bankrupt Infrastructure Leasing and Financial Services’ 26 per cent stake in ONGC Tripura Power Company (OTPC) for Rs 1,227 crore, the two firms said on Tuesday.
OTPC is a special purpose vehicle set up by Oil and Natural Gas Corporation (ONGC) to build a 726.6 megawatt combined cycle gas turbine thermal power plant at Palatana, Tripura.
The IL&FS group and Government of Tripura were partners in the special purpose vehicle (SPV). ONGC holds 50 per cent interest in the company that supplies electricity to northeastern states.
Tripura government holds 0.5 per cent while India Infrastructure Fund II holds the balance 23.5 per cent stake.
“GAIL and IL&FS Group successfully concluded the transaction wherein GAIL acquired an equity stake of 26 per cent held by IL&FS Energy Development Company Ltd (IEDCL) and IL&FS Financial Services Ltd (IFIN) in OTPC, which owns and operates a 726.6 MW gas-based combined cycle power plant in Palatana, Tripura,” the state-owned firm said in a stock exchange filing.
In a separate statement, IL&FS said it has completed sale of its 26 per cent stake in OTPC to GAIL at an aggregate valuation of Rs 1,227 crore.
“With this transaction, IL&FS has resolved a debt of approx Rs 3,656 crore that formed part of the overall Group debt of approx Rs 99,000 crore, as of October 2018,” it said without giving details.
IL&FS Group held stake in OTPC through two subsidiaries – about 12 per cent held by IEDCL and 14 per cent held by IFIN.
“The Group has duly received an aggregate sum of Rs 319 crore for its 26 per cent stake from GAIL in the two companies thereby closing this stake sale transaction,” the IL&FS statement said.
OTPC has been categorized as a green company and has an aggregate debt of about Rs 3,000 crore which will continue to be serviced under new shareholding.
“The IL&FS New Board, in its latest updates, had announced that the IL&FS Group has resolved over Rs 52,000 crore debt while maintaining its overall Group debt resolution estimate at Rs 61,000 crore. This transaction forms part of the overall IL&FS Group resolution estimate of Rs 61,000 crore,” the statement said.
GAIL had in November 2021 got the National Company Law Tribunal (NCLT) approval for the acquisition.
The Tripura power project was set up to use locally-produced natural gas which was otherwise economically unviable to transport.
The 726.6 MW project is an integral part of the government’s efforts to develop infrastructure in the northeastern region and has been touted as the single-largest investment in northeast India.
The gas to the Tripura project is supplied by ONGC’s 55 km pipeline. As part of its green energy playbook, GAIL is focussing on building a clean energy portfolio and the acquisition is part of that plan. PTI ANZ ANU ANU