Tripura govt to acquire 26% shares of Palatana thermal project from IL&FS

The ministry of power allocated over 58% energy from the Palatana project to north-eastern states

The Tripura government will soon start a dialogue for the purchase of 26 per cent equity shares of the Palatana gas thermal power project from the Infrastructure Leasing and Financial Services (IL&FS).

The 726.6 mw gas-based power project, run by ONGC Tripura Power Company (OTPC), was formally started in 2014 as a joint venture of the ONGC, the IDFC, the IL&FS and the Tripura government.

"The state of Tripura owns 0.5 per cent share in the project. We have come to know from the central government that the IL&FS will offload its entire 26 per cent share. We are in the process of opening a dialogue with them to buy all the shares because the Palatana power project is a very profitable company," Law Minister Ratan Lal Nath told reporters on Friday.

The ministry of power allocated over 58 per cent energy from the Palatana project to north-eastern states.

Out of Tripuras share in the project's output, the state government is selling 160 mw on a daily basis to neighbouring Bangladesh.

The IL&FS purchased 26 per cent equity shares at Rs 2.91 billion. With an increase in value, the equity shares are now estimated at Rs 3 billion, Nath said.

The minister claimed that the value of the shares is likely to appreciate in future.