New Delhi: Maharatna PSU GAIL (India) Ltd has completed the acquisition of bankrupt Infrastructure Leasing and Financial Services' (IL&FS) 26 percent stake in ONGC Tripura Power Company (OTPC). OTPC is a special purpose vehicle formed between ONGC, Government of Tripura, IL&FS to set up and operate a 726.6 MW combined cycle gas turbine (CCGT) thermal power plant at Palatana, Tripura. "GAIL and IL&FS Group successfully concluded the transaction wherein GAIL acquired an equity stake of 26 percent held by IL&FS Energy Development Company Ltd (IEDCL) and IL&FS Financial Services Ltd (IFIN) in ONGC Tripura Power Company Limited (OTPC), which owns and operates a 726.6 MW gas-based combined cycle power plant in Palatana, Tripura," said Gail said in a regulatory filing to the stock exchanges.

The company has got environmental approval to set up additional 2 units of 363 MW each totalling 1453 MW.

ONGC holds 50 percent interest in the company in the project that supplies electricity to the northeastern states. Tripura government holds 0.5 percent while India Infrastructure Fund II holds the balance of 23.5 percent. "With this transaction, IL&FS has resolved a debt of approx. Rs 3,656 crore – that formed part of the overall Group debt of approx. Rs 99,000 crore, as of October 2018", Oil & Gas Maharatna PSU said on Tuesday. 

In November 2021 GAIL had got the National Company Law Tribunal (NCLT) approval for the acquisition. The Tripura power project was set up to use locally produced natural gas which was otherwise economically unviable to transport gas. The gas to the Tripura project is supplied by ONGC's 55 km pipeline.