Gail buys IL&FS group's 26% stake in Indian CCGT

India’s biggest gas marketing company Gail has acquired debt-laden IL&FS group’s 26% stake in ONGC Tripura Power Co (OTPC), which owns a gas-based combined cycle gas turbine (CCGT) power plant, the company said on January 4.

OTPC, which owns and operates the 726.6 MW gas-based plant in the state of Tripura, is a special purpose vehicle that was set up by the state-run energy company ONGC, IL&FS group and the government of Tripura. IL&FS Energy Development Co. and IL&FS Financial Services, part of the IL&FS group, held 12% and 14% stake in OTPC, respectively.

IL&FS group in a separate statement said it has received an aggregate sum of 3.19bn rupees ($43mn) for its 26% stake from Gail in the two companies.

Post this transaction, Gail will hold a 26% stake in OTPC, ONGC will own 50%, Indian Infrastructure Fund II 23.5% and government of Tripura will own 0.5%.