GAIL (India) Limited has acquired a 26% stake in ONGC Tripura Power Company (OTPC), the owner and operator of a 726.6MW Palatana power plant, a gas-fired combined cycle power project in Palatana, Tripura.

The financial terms of the deal were not disclosed.

Commissioned in 2013, the Palatana power plant comprises two units, each of 363.3MW capacity.

GAIL (India) acquired the stake in the Palatana power plant from IL&FS Group companies namely that include IL&FS Energy Development Company and IL&FS Financial Services.

The Indian government-owned natural gas company took part in an open bidding process for the ONGC Tripura power plant held by IL&FS in which it prevailed as the successful bidder.

On its acquisition of the stake in the Palatana power plant, GAIL (India) stated: “Being an integrated natural gas company, the acquisition would be synergistic and would enable GAIL to stronghold its presence in North Eastern Region of the country.”

The other stakeholders of ONGC Tripura Power Company are ONGC, which holds a 50% stake, India Infrastructure Fund GIP II, which holds 23.5%, and the Tripura government, which has a 0.5% stake.

ONGC Tripura Power Company also holds a stake of 26% in North East Transmission Company (NETC), the holding company for a transmission line developed to evacuate power generated by the former’s Palatana power plant.

The other stakeholders of NETC are Powergrid and the States of North Eastern Region.

  GAIL (India), IL&FS Energy Development Company, IL&FS Financial Services, IL&FS Group, India, NETC, ONGC Tripura Power Company, OTPC, Palatana, Tripura