Tripura may float gas unit shares

Tripura Natural Gas Company Limited (TNGCL), a joint venture between Gas Authority of India Limited (GAIL), and governments of Tripura and Assam, was looking at issuing 51 per cent stake to financial institutions (FIs).

It had already prepared the terms of reference and started discussions with institutions like the World Bank, ICICI Bank, International Finance Corporation of Washington, and India’s HDFC and Infrastructure Leasing & Finance Services (ILFS).

The equity will be issued through private placement, said S C Hatwal, managing director of TNGCL. Each entity will be entitled to a maximum of 5 per cent share capital. Currently, GAIL had a 29 per cent stake in the JV.

Tripura government through Tripura Industrial Development Corporation (TIDCL) had 10 per cent while 10 per cent was with Assam Gas Company Limited (AGCL). TNGCL was looking at accelerating negotiations from October this year, and complete the process of identifying private partners by March 2009.

TNGCL recorded a turnover of Rs 7.69 crore last fiscal with gross profit (GP) ratio of 50 per cent. It currently did not have any gas blocks in Tripura but used the operating blocks of GAIL.

Oil and Natural Gas Corporation (ONGC) continued to be the leader in the state.

The JV company was targeting to come up with retail outlets for compressed natural gas (CNG) apart from catering to consumers in the commercial and industrial sectors, Hatwal said.