M&A
GAIL acquires IL&FS' 26% stake sale in ONGC Tripura Power Co for Rs.1,227-Cr
Debt-laden Infrastructure Leasing and Financial Services (IL&FS) has completed the sale of its 26% stake in ONGC Tripura Power Company (OTPC) to Gas Authority of India Limited (GAIL) for INR 1,227 crore. IL&FS Group held its 26% stake in OTPC through two subsidiaries – 12% by IL&FS Energy Development Company Ltd and 14% by IL&FS Financial Services Ltd. The group has received an aggregate sum of INR 319 crore for the 26% stake from GAIL. Other shareholders of OTPC include ONGC with 50%, Indian Infrastructure Fund II with 23.5% and the Government of Tripura at 0.5%. OTPC's total debt of INR 3,000 crore will be serviced under the new shareholding. OTPC was set up as a special purpose vehicle by ONGC, Government of Tripura, IL&FS, to set up and operate a 726.6 MW combined cycle gas turbine thermal power plant at Palatana in Tripura. The project has environmental approval to set up additional two units of 363 MW each.
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