The National Company Law Tribunal has approved state-owned gas utility GAIL (India) Ltd’s acquisition of bankrupt Infrastructure Leasing and Financial Services’ 26 per cent stake in ONGC Tripura Power Company (OTPC), GAIL said on Friday.
OTPC is a special purpose vehicle between Oil and Natural Gas Corporation (ONGC), IL&FS Group and the Tripura government for setting up of a 726.6mw combined cycle gas turbine (CCGT) thermal power plant at Palatana, Tripura.
ONGC holds 50 per cent interest in the company in the project that supplies electricity to the northeastern states. The Tripura government holds 0.5 per cent while India Infrastructure Fund II holds the balance 23.5 per cent stake.
“NCLT has granted approval for the acquisition of 26 per cent equity stake of Infrastructure Leasing & Financial Services (IL&FS) Group by GAIL (India) Ltd in OTPC,” GAIL said in a stock exchange filing.
The stake, it said, is being acquired from IL&FS Group companies namely IL&FS Energy Development Company Ltd (EDCL) and IL&FS Financial Services Ltd (IFIN).
“The closing of the transaction is yet to take place and actions are being taken by IL&FS and GAIL for the same,” it added.
The Tripura power project was set up to use locally produced natural gas which was otherwise economically unviable to transport gas.
The 726.6mw 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.
As part of its green energy playbook, GAIL is focussing on building a clean energy portfolio and the acquisition is part of that plan.
GAIL had reported more than doubling of its net profit in the September quarter after it again started making money on gas marketing.
Net profit of Rs 2,862.95 crore, or Rs 6.45 per share, in July-September, was 131 per cent higher than Rs 1,239.67 crore, or Rs 2.75 a share, in the same period last fiscal, according to the company's stock exchange filing.
Sequentially, net profit was up 87 per cent over Rs 1,529.92 crore earning in the April-June quarter of the current fiscal.