An Indian infrastructure fund has reportedly initiated early talks to accumulate a 49.5% stake within the ONGC Tripura Energy Firm (OTPC).
Indian government-owned The Nationwide Funding and Infrastructure Fund (NIIF) has reportedly supplied a deal valued at $204m (Rs15bn).
OTPC owns a 726.6MW pure gas-based energy plant in Palatana, Tripura. This provides energy to areas of north-east India with an power deficit.
Two individuals with data of the matter informed The Financial Instances that NIIF is planning to purchase a 26% stake from Infrastructure Leasing & Monetary Companies (IL&FS). It additionally plans to purchase a 23.5% stake from World Infrastructure Companions (GIP), a US-based infrastructure funding fund.
The biggest stakeholder in OTPC is alleged to be Oil And Pure Fuel Company (ONGC) with a 50% stake. On the similar time, the federal government of Tripura holds the smallest stake of zero.5%.
The 2 sources stated different buyers are additionally eager to accumulate a stake in OTPC, and the ultimate bids shall be launched in October this 12 months.
If the talks are profitable, this may mark NIIF’s first funding within the typical power sector. Spokespersons for NIIF and IL&FS declined to touch upon the experiences.
OTPC first invited expressions of curiosity for a 26% stake in Could this 12 months. The stake is at the moment owned by IL&FS Monetary Companies and IL&FS Power Growth Company.
To help the divesture of the stake, IL&FS is believed to have appointed Arpwood Capital and JM Monetary. GIP reportedly employed Rothschild to divest its stake in OTPC, the newspaper reported.
As per IL&FS notification, 86.5% of the power generated by OTPC is equipped underneath a long-term energy buy agreements (PPAs). It additionally has a gasoline provide settlement with ONGC.
In July this 12 months, India’s electrical energy distribution firm NTPC signed a memorandum of understanding with NIIF by way of Nationwide Funding and Infrastructure Fund Restricted to discover funding alternatives in Indian renewable power in addition to energy distribution segments.