New Delhi: State-owned gas utility GAIL (India) Lad on Tuesday said it has completed the acquisition of bankrupt Infrastructure Leasing and Financial Services (IL&FS) 26 percent stake in ONGC Tripura Power Company (OTPC).

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 (CCGT) thermal power plant at Palatana, Tripura. The ILAFS group and the Government of Tripura (GoT) were partners in the special purpose vehicle (SPV).

ONGC holds 50 percent interest in the company in the project that supplies electricity to the northeastern States. Tripura government bolds 0.5 percent, while In dia Infrastructure Fund 11 holds the balance 23.5 percent stake

"GAIL and IL&FS Group successfully concluded the transaction wherein Gail acquired an equity stake of 26 percent held by ILAPS Energy Development Compa my Ltd (EDCL) and IL&FS Financial Services (FIN) in ONGC Tripura Power Company Limited (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.

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 gas.

Source- PTI