GAIL gets NCLT nod to buy IL&FS group's 26% stake in ONGC Tripura Power Co | Mint
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Business News/ Companies / News/  GAIL gets NCLT nod to buy IL&FS group's 26% stake in ONGC Tripura Power Co
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GAIL gets NCLT nod to buy IL&FS group's 26% stake in ONGC Tripura Power Co

The stake is being acquired from IL&FS Group companies namely IL&FS Energy Development Company Ltd (EDCL) and IL&FS Financial Services Ltd (IFIN), GAIL said in a statement

The closing of transaction is yet to take place and actions are being taken by IL&FS and GAIL for the same, the company said.Premium
The closing of transaction is yet to take place and actions are being taken by IL&FS and GAIL for the same, the company said.

State-owned GAIL today said the companies tribunal has granted approval for acquisition of 26% equity stake of Infrastructure Leasing & Financial Services (L&FS) group companies in ONGC Tripura Power Company Ltd (OTPC).

"The stake is being acquired from IL&FS Group companies namely IL&FS Energy Development Company Ltd (EDCL) and IL&FS Financial Services Ltd (IFIN)," GAIL said in a statement.

OTPC is a special purpose vehicle between ONGC, IL&FS Group and Government of Tripura (GoT) for setting up of a 726.6 MW combined cycle gas turbine (CCGT) thermal power plant at Palatana, Tripura.

ONGC holds 50% interest in the company in the project that supplies electricity to the northeastern states. Tripura government holds 0.5 per cent while India Infrastructure Fund II holds the balance 23.5 per cent stake.

The closing of transaction is yet to take place and actions are being taken by IL&FS and GAIL for the same, the company said.

On Thursday's Muhoorat trading, GAIL shares were up 0.70% to close at 151.60 on NSE.

The Tripura power project was set up to use locally produced natural gas which was otherwise economically unviable to transport gas.

The 726.6 MW project is an integral part of the government's efforts to develop infrastructure in the northeastern region and has been touted as the single largest investment in northeast India.

The gas to the Tripura project is supplied by ONGC's 55 km pipeline.

GAIL is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG re-gasification, petrochemicals, city gas, E&P, etc.

It owns and operates a network of around 13,340 km of natural gas pipelines spread across the length and breadth of country. It is also working concurrently on execution of multiple pipeline projects to further enhance the spread. GAIL commands 70% market share in gas transmission and has a Gas trading share of over 50% in India.

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Published: 05 Nov 2021, 03:45 PM IST
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