GAIL, India’s largest state-owned natural gas processing and distribution company, on the deal to acquire the stake in the gas-based power plant. If successful, the deal will give GAIL rights equal to Oil and Natural Gas Corporation (ONGC), which is the 50% owner. The deal could resolve debt worth Rs 4,000 crore on the books of ONGC Tripura. Since it is 26% owned by IL&FS, the sale would have a positive impact on debt owed by IL&FS as well.
IL&FS had sought expressions of interest to acquire 26% stake held in OTPC by IL&FS Financial Services and IL&FS Energy Development Corporation. It also appointed Arpwood Capital and JM Financial as advisors to the deal. Subsequently, GIP hired financial advisory group Rothschild to help sell its entire stake. One of India’s largest gas-based power plants, ONGC Tripura has an operational capacity of 726.6 MW. The plant also has secured the majority of approvals to add two 363.3 MW units to its existing capacity and expand to a total capacity of 1,453 MW.