GAIL gets green light from NCLT to buy IL&FS group’s 26% stake in ONGC Tripura Power Co
State-owned GAIL said today that the companies court has approved the acquisition of a 26% stake in Infrastructure Leasing & Financial Services (L&FS) group companies in ONGC Tripura Power Company Ltd (OTPC).
“The interest is acquired from the companies of the IL&FS group, namely IL&FS Energy Development Company Ltd (EDCL) and IL&FS Financial Services Ltd (IFIN),” GAIL said in a statement.
OTPC is a special vehicle between ONGC, IL&FS Group and the Government of Tripura (GoT) for the establishment of a 726.6 MW Combined Cycle Gas Turbine Thermal Power Plant (CCGT) in Palatana, Tripura.
ONGC owns a 50% stake in the company in the project which provides electricity to the northeastern states. The Tripura government owns 0.5 percent while the India Infrastructure Fund II holds the balance 23.5 percent.
The deal has yet to close and action is being taken by IL&FS and GAIL for the same, the company said.
During Thursday’s Muhoorat session, GAIL stock rose 0.70% to close at ??151.60 on NSE.
The Tripura power project was set up to use locally produced natural gas that was not economically viable for gas transmission.
The 726.6 MW project is an integral part of the government’s efforts to develop infrastructure in the northeast region and has been touted as the largest investment in northeast India.
Gas for the Tripura project is supplied through the ONGC 55 km pipeline.
GAIL is the leading Indian natural gas company with diversified interests in the natural gas value chain: trading, transport, production and transport of LPG, LNG regasification, petrochemicals, town gas, E&P, etc.
It owns and operates a network of approximately 13,340 km of gas pipelines spread across the country. He is also working on running multiple pipeline projects simultaneously to further improve propagation. GAIL has a 70% market share in gas transportation and has a gas trade share of over 50% in India.
Never miss a story! Stay connected and informed with Mint. Download our app now !!