ONGC Tripura Power Company (OTPC), which owns and runs a 726.6 MW gas-based combined cycle power plant in Palatana, Tripura, has purchased a 26% ownership investment in GAIL.
The share was bought from IL&FS Group firms IL&FS Energy Development Company (IEDCL) and IL&FS Financial Services, according to the company.
GAIL has broad interests across the natural gas value chain, including trading, transmission, LPG production and transmission, LNG re-gasification, petrochemicals, and city gas, and has a worldwide footprint in countries such as the United States, Russia, Singapore, Myanmar, China, and Egypt. Apart from the 26 percent equity bought by GAIL from the IL&FS Group, ONGC (50 percent), the Government of Tripura (0.50 percent), and India Infrastructure Fund GIP II own the balance of OTPC’s stock (23.50 percent).
GAIL and IL&FS Group completed the transaction on January 4 with the signing of a Deed of Adherence (DoA) to the OTPC Shareholders Agreement by Santanu Roy, Executive Director (BD, SD & CA) of GAIL, Feby Koshy, CEO of IEDCL, and Santanu Sen, Senior Vice President of IL&FS on behalf of IFIN, in the presence of GAIL Chairman and Managing Director Manoj Jain and IL& The DoA has also received the formal approval of OTPC’s other shareholders.
GAIL, a Maharatna PSU under the Ministry of Petroleum and Natural Gas, was the victorious bidder in an open bidding procedure held by IL&FS. The acquisition would be synergistic since GAIL is an integrated natural gas firm, allowing it to create a presence in the country’s northeast, while OTPC owns and runs a 726.6 MW (363.3 x 2) gas-based combined cycle power plant in Palatana, Tripura.
The firm also has a 26 percent stake in the North-East Transmission Company (NETC), a joint venture founded by OTPC, Powergrid, and states in the north-eastern area with the goal of developing transmission lines to transport power from OTPC’s 726.6 MW gas-fired power plant.
