On Tuesday, the state-owned gas utility company GAIL (India)  said it has completed the acquisition of the bankrupt Infrastructure Leasing and Financial Services' (IL&FS) 26 per cent stake in ONGC Tripura Power Company (OTPC).

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The OTPC is a special purpose vehicle set up by Oil and Natural Gas Corporation (ONGC) to build a 726.6 megawatt combined cycle gas turbine (CCGT) thermal power plant at Palatana, Tripura. The IL&FS group and the Government of Tripura (GoT) were partners in the special purpose vehicle (SPV).

At present, ONGC holds 50 per cent 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.

"GAIL and IL&FS Group successfully concluded the transaction wherein GAIL acquired an equity stake of 26 per cent 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," the state-owned firm said in a stock exchange filing.

In November 2021, GAIL got the National Company Law Tribunal (NCLT) approval for the acquisition.

It has to be noted that 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.

As part of its green energy playbook, GAIL is focussing on building a clean energy portfolio and the acquisition is part of that plan.

(With inputs from PTI)