GAIL acquires 26 pc stake in ONGC Tripura unit from IL&FS

BBN Bureau

NEW DELHI/January 06-2022: GAIL (India) Ltd has acquired 26 per cent equity stake in ONGC Tripura Power Company (OTPC), which owns and operates a 726.6 MW gas-based combined cycle power plant in Palatana, Tripura.

The stake has been acquired from IL&FS Group companies namely, IL&FS Energy Development Company Ltd (IEDCL) and IL&FS Financial Services Ltd a statement from the company said.

GAIL and IL&FS Group concluded the transaction a few days ago by signing Deed of Adherence (DoA) to Shareholders Agreement of OTPC. 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,” the statement added.

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.

The group also has global presence and business interests in the US, 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 26 per cent equity acquired by GAIL from IL&FS Group, remaining shareholding is with 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 Ltd (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.

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