India Infrastructure Fund II will be acquiring 23.5% stake in ONGC Tripura Power Company (OTPC) for Rs 426 crore. ONGC, IL&FS Energy Development Company Limited (IEDCL) and government of Tripura, three promoters of OTPC today entered into definitive agreements with IDFC Alternatives Ltd.
Post this transaction, the shareholding in OTPC will stand with ONGC holding 50%, IEDCL 26%, Government of Tripura 0.5% and India Infrastructure Fund II– 23.5%. This consummates the equity structure as was envisaged at the time of setting up the project.
This investment by India Infrastructure Fund II (through its manager- IDFC Alternatives Ltd) brings on board a credible infrastructure partner, further strengthening the core development theme of the project.
OTPC has been promoted by ONGC, IEDCL and Govt. of Tripura for implementation of a gas based 726.6 MW combined cycle thermal power project at Palatana, Tripura. The project was conceived to utilize the stranded gas reserves of ONGC found in the state of Tripura so as to aid in the economic progress of the north-eastern (NE) states. The project is backed by a long term gas supply agreement with ONGC, while the power off-take is tied up on long term basis with the 7 north-eastern states.
OTPC also owns 26% stake in North East Transmission Company Limited (NETCL), a joint-venture company of OTPC, Power Grid Corporation of India Ltd and the 7 north-eastern states. NETCL has commissioned a dedicated 665 km long 400KV DC line for evacuation of power from the OTPC plant.