India Infrastructure Fund takes 23.5% stake in ONGC Tripura

With this stake sale, all of the equity of ONGC Tripura Power Co Ltd has been tied up. Oil and Natural Gas Corp (ONGC) will continue to hold 50 percent stake in OTPC while IL&FS Energy Development Co Ltd (IEDCL) will have 26 percent and Government of Tripura 0.5 percent stake.

“ONGC, IEDCL and Government of Tripura, three promoters of OTPC, have entered into definitive agreements with India Infrastructure Fund II by which the latter will be acquiring 23.5 percent stake in OTPC. The total consideration of the transaction is about Rs 426 crore,” the company said in a statement.

This consummates the equity structure as was envisaged at the time of setting up the project. ONGC formed OTPC for implementation of a gas based 726.6 MW combined cycle thermal power project at Palatana, Tripura. The project was conceived to utilise the stranded gas reserves of ONGC found in the state so as to aid in the economic progress of the north-eastern states. The project is backed by a long term gas supply agreement with ONGC, while the power off-take is tied up on long term basis with the seven north-eastern states.

OTPC also owns 26 percent stake in North East Transmission Company Limited (NETCL), a joint-venture company of OTPC, Power Grid Corporation of India Ltd and the 7 north-eastern states. NETCL has commissioned a dedicated 665 km long 400KV DC line for evacuation of power from the OTPC plant. “This investment by India Infrastructure Fund II (through its manager- IDFC Alternatives Ltd) brings on board a credible infrastructure partner, further strengthening the core development theme of the project,” the statement said.