Home >companies >Tripura government set to buy IL&FS shares in Palatana project

Agartala: The Tripura government will soon start dialogue for purchase of 26% equity shares of the Palatana gas thermal power project from Infrastructure Leasing and Financial Services (IL&FS).

The 726.6 Megawatt (MW) gas-based power project, run by ONGC Tripura Power Company (OTPC), was launched in 2014 as a joint venture between ONGC, IDFC, IL&FS and the Tripura government.

“The state of Tripura owns 0.5% share in the project. We have come to know from the central government that IL&FS will offload its entire 26% stake. We are in the process of opening dialogue with them to buy all the shares because the Palatana power project is a very profitable company," law minister Ratan Lal Nath said.

The ministry of power allocated over 58% energy from the Palatana project to north eastern states.

Out of Tripura’s share in the projects output, the state government is selling 160 MW on a daily basis to neighbouring Bangladesh.

Also read: Government weighs outright sale of crisis-hit IL&FS

IL&FS purchased 26% equity shares at 291.20 crore. With increase in value, the equity shares are now estimated at 300 crore, Nath said. The value of the shares was likely to appreciate further, he added.

Also read: IL&FS crisis impact: Corporates return to banks for loans

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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