Mumbai: State-owned gas utility GAIL (India) Ltd has completed the acquisition of a 26% bankrupt stake in Infrastructure Leasing and Financial Services (IL&FS) in ONGC Tripura Power Company (OTPC), the company said on Tuesday.

OTPC is a special purpose vehicle formed between ONGC, Government of Tripura, IL&FS to set up and operate a 726.6 MW Combined Cycle Gas Turbine (CCGT)  Thermal Power Plant at Palatana, Tripura. The company obtained environmental approval to set up additional 2 units of 363 MW each totaling 1453 MW.

ONGC holds 50% stake in the company in the project that supplies electricity to the northeastern states. The Tripura government holds 0.5%, while the Indian Infrastructure Fund II holds the balance 23.5%.

With this transaction, IL&FS has resolved a debt of approx. Rs 3,656 crore, which was part of the group's total debt of approx. The company said it is Rs 99,000 crore in October 2018.

“GAIL and IL&FS Group successfully concluded the transaction whereby GAIL acquired a 26% stake in IL&FS Energy Development Company Ltd (IEDCL) and IL&FS Financial Services Ltd (IFIN) in ONGC Tripura Power Company Limited (OTPC), which Jill owns and operates in a statement the 726.6 MW gas-based combined cycle power plant in Palatana, Tripura," said Gail in a statement.

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 that would not otherwise be profitable to transport gas. Gas is supplied to the Tripura project through the 55 km ONGC pipeline.

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