ONGC, GIP, Tripura govt plan to buy IL&FS' 26% stake in Rs 3,804-crore OTPC power project in Palatana

Oil and Natural Gas Corp. Ltd (ONGC), Global Infrastructure Partners (GIP) and the Tripura government are reportedly planning to buy a stake in ONGC Tripura Power Co. Ltd (OTPC), a media report said.

According to Mint, the above-mentioned entities are planning to buy IL&FS's 26 percent stake in the Rs 3,804-crore OTPC.

OTPC runs the Palatana power project in Tripura.

ONGC has a 50 percent stake in the project, IL&FS holds 26 percent, and GIP has a 23.5 percent stake, with the Tripura government holding a 0.5 percent stake, the report added.

The 726.6 MW gas-based power project, run by ONGC Tripura Power Company (OTPC), was formally started in 2014 as a joint venture of the ONGC, the IDFC, the IL&FS and the Tripura government.

Last month, ONGC got clearance from the Union ministry of environment and forest and the state authorities to start drilling for gas in south Tripura, The Times of India had reported.

 ONGC, GIP, Tripura govt plan to buy IL&FS 26% stake in Rs 3,804-crore OTPC power project in Palatana

Representational image. Reuters

Meanwhile, IL&FS on Sunday said Japan's Orix Corporation, which owns 49 percent share each in its seven operating wind power plants, has expressed intent to buy the remaining stake in those assets.

The seven wind power plants, in the form of special purpose vehicles (SPVs) and owned by IL&FS Wind Energy Limited (IWEL), are spread across 12 states with a total generation capacity of 874 MW.

The group had initiated the process of the sale of controlling stake in the wind power plants in November last year by inviting expressions of interest.

The cash-strapped group had earlier said that Gail (India) Ltd had emerged as the highest bidder to acquire seven wind power plants, offering Rs 4,800 crore for 100 percent of enterprise value with no hair cut to the debt of the SPVs, which is close to Rs 3,700 crore.

The board of diversified IL&FS group, which is estimated to have a debt burden of over Rs 94,000 crore, was superseded by the corporate affairs ministry in October last year. Since then, the National Company Law Tribunal (NCLT)-appointed board is managing the affairs to ensure orderly settlement.

As part of the resolution efforts, the group companies have been classified into three categories, mainly based on their financial positions -- green, amber and red.

With PTI inputs

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Updated Date: May 20, 2019 12:38:55 IST