Infrastructure Leasing & Financial Services (IL&FS) group on Monday sought expressions of interest (EoI) from potential buyers to sell its entire 26% stake in gas-based power plant ONGC Tripura Power Company Ltd. The proposed sale is part of IL&FS' ongoing asset monetisation plan.
Other shareholders in ONGC Tripura are Oil And Natural Gas Corporation Ltd, which holds 50%, American infrastructure investment fund Global Infrastructure Partners, which owns 23.5% through its fund India Infrastructure Fund-II, and the government of Tripura that holds the balance 0.5%, on a fully diluted basis.
To be eligible to submit an EoI, corporate buyers must have a minimum net worth of Rs. 150 crore as per the audited balance sheet as of 31 March, 2019, or later. For investment funds, including private equity funds, assets under management in India or committed funds available for investment in firms incorporated in India should at least be Rs. 600 crores as of 31 March, 2019.
The proposed transaction will be managed by investment banking firms, Arpwood Capital and JM Financial Ltd. The last date for submitting the formal interest is set at 8 June.
Located in Palatana in Tripura, ONGC Tripura is one of India’s largest gas-based power projects with an operational capacity of 726.6 mega-watt (MW). The plant supplies power to the energy deficit region of northeast India, with 86.5% of the capacity tied under long-term power purchase agreements, and gas sourced from ONGC at fixed prices as well as fixed escalation through a long-term fuel supply agreement. The plant also has secured majority of the approvals to add two 363.3 MW units to the existing capacity and expand to a total capacity of 1,453 MW.
The company also holds a 26% stake in North East Transmission Company Ltd, which has developed 1,325.6 circuit kilometres, 400 kilovolt interstate transmission lines in the north-eastern states of Assam, Meghalaya and Tripura, from the project site to the substation of Power Grid Corporation of India Ltd.
