Crisis-hit Infrastructure Leasing and Financial Services (IL&FS) has decided to sell its entire 26% stake in ONGC Tripura Power Company (OTPC), its joint venture with state-run ONGC. IL&FS has expressions of interest (EoI) to divest the 26% stake, it holds through IL&FS Financial Services (IFIN) and IL&FS Energy Development Co Ltd (IEDCL).
OTPC operates a fully operational natural gas based 726.6 MW power plant located in Palatana (Tripura), supplying power to the energy deficit region of north east India. This plant is one of India's largest gas-based power project.
The EoI document issued by IL&FS states, "...in order to monetise the investments made by the IL&FS Group in OTPC, expressions of interest are invited for acquisition of 26% stake held by the IL&FS Group in OTPC..."
IFIN and IEDCL, both subsidiaries of IL&FS hold a 13.97% and 12.03% stake in OTPC. The other shareholders of OTPC are state-run ONGC, with 50% stake, India Infrastructure Fund-II with 23.5%, managed by Global Infrastructure Partners and the government of Tripura holding 0.5% stake.
OTPC operates its fully operational natural gas based 726.6 MW power plant located in Palatana. In addition to the benefit of availability of local gas wells for drawing sufficient gas, OTPC also has a load-centre advantage, with access to the energy deficit north-eastern region of India as well as Bangladesh.
"Consummation of any transaction pursuant to the process initiated by this EOI will be subject to necessary approvals, including, the approval of the board and requisite corporate approvals of other relevant group companies, if applicable. Further, approvals required under applicable law or from statutory authorities under the overall supervision of Justice DK Jain (retd.), and approval of the NCLT would also be required," the EoI document states.
For bidding the IL&FS stake in OTPC, corporate bodies are required to have a minimum net worth of Rs150 crore as per the audited balance sheet as of 31 March 2019 or later.
Investment funds, including private equity funds should have minimum assets under management in India of Rs600 crore as of 31 March 2019 or later, or committed funds available for investment or deployment in companies incorporated in India of at least Rs600 crores only.
The EoIs have to be submitted by 5pm on 8 June 2020.