GAIL can buy IL&FS’s stake in OTPC: NCLT

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

The National Company Law Tribunal (NCLT) has approved State-owned gas utility GAIL (India) Ltd’s acquisition of bankrupt Infrastructure Leasing and Financial Services’ 26% stake in ONGC Tripura Power Company (OTPC), GAIL said on Friday.

“NCLT has granted approval for the acquisition of 26% equity stake of Infrastructure Leasing & Financial Services (IL&FS) Group by GAIL (India) Ltd. in OTPC,” GAIL said in a stock exchange filing.

The stake, it said, is being acquired from IL&FS Group companies.

“The closing of the transaction is yet to take place and actions are being taken by IL&FS and GAIL for the same,” it added.

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.

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