The second infrastructure fund of India's IDFC Alternatives, the private equity arm of IDFC Ltd., is to acquire a 23.5% stake in Palatana power project in Tripura, a state in Northeast India, for the equivalent to US$68.2 million.
The shareholders in the ONGC-Tripura Power Co. Ltd
(OTPC) include state-owned Oil and Natural Gas Corp. Ltd (ONGC), IL&FS Energy Development Company Limited (IEDCL) and the Tripura government
.ONGC, IL&FS and the Government of Tripura have entered into definitive agreements with India Infrastructure Fund II for the transaction.
The Tripura power project was planned to transport gas from the North-East of India to other parts of the country. The 726.6MW project is part of the government’s efforts to develop infrastructure in the north-eastern region.
After the transaction, the shareholding in OTPC will stand as: ONGC-50%, IEDCL-26%, Govt. of Tripura-0.5% and India Infrastructure Fund II–23.5%.
OTPC also owns a 26% stake in North East Transmission Company Limited (NETCL), a joint-venture company of OTPC, Power Grid Corporation of India Ltd and the 7 north-eastern states. NETCL has commissioned a dedicated 665 km long 400KV DC line for evacuation of power from the OTPC plant.