Private equity firm IDFC Alternatives has inked a deal to buy 23.5 per cent equity stake in ONGC Tripura Development Company Ltd (OTPC) for around Rs 426 crore ($68 million), as per a press statement.
OTPC has been promoted by ONGC, IL&FS Energy Development Company Ltd (IEDCL) and the government of Tripura for a gas-based 726.6 MW combined cycle thermal power project at Palatana, Tripura.
Following the completion of the transaction, ONGC's stake will reduce to 50 per cent while IEDCL and government of Tripura will own 26 per cent and 0.5 per cent, respectively.
The project is backed by a long-term gas supply agreement with ONGC, while the power off-take is tied up on a long-term basis with the seven north-eastern states.
OTPC also holds 26 per cent equity stake in North East Transmission Company Ltd (NETCL), a joint-venture with Power Grid Corporation of India Ltd and the seven north-eastern states. NETCL commissioned a dedicated 665 km long 400KV DC line for evacuation of power from the OTPC plant.
For IDFC Alternatives, the private equity arm of IDFC Ltd, this is the third known investment from its new infrastructure fund India Infrastructure Fund II. It raised Rs 5,500 crore ($900 million) for its second infra fund, one of the
single-largest funds raised across investment themes in the recent past.
In February it bought a stake in Delhi Cargo Services Center Pvt Ltd for Rs 28.6 crore ($4.6 million). Last December, it had reportedly invested in DB Power's Chhattisgarh thermal power plant.
(Edited by Joby Puthuparampil Johnson)