InvestorQ : Is IL&FS all set to sell a power plant to ONGC?
Debbie Mascarenhas made post

Is IL&FS all set to sell a power plant to ONGC?

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Crowny Pinto answered.
5 months ago

This refers to a minority stake in a JV between ONGC and IL&FS in the state of Tripura. ONGC will buy out the 26% stake held by IL&FS in the ONGC Tripura Power Company (OPTC). The OPTC owns and operates a 726.6 MW gas based power plant in Tripura, which supplies power to the entire North Eastern region. This is one of the largest gas based plant in India. ONGC has right of first refusal and is likely to exercise its right and take the stake. Nearly 87% of the power capacity of the plant is under long term power purchase agreements, which de-risks its model. OTPC also has a long term agreement for procurement of gas from ONGC. The plant has the potential to expand its generation capacity to 1453 MW across two of its plants. This would allow IL&FS to monetize some of its locked assets.