India Infrastructure Fund acquires 23.5% stake in ONGC Tripura Power

India Infrastructure Fund II has agreed to acquire 23.5 percent stake in ONGC Tripura Power Company Ltd (OTPC) - which is jointly promoted by ONGC, IL&FS Energy Development Company Limited (IEDCL) and Government of Tripura – for about Rs 426 crore. Post this transaction, the shareholding in OTPC will stand as ONGC (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 for implementation of a gas based 726.6 MW combined cycle thermal power project at Palatana, Tripura. The project was conceived to utilise 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.