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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

Press Trust of India  |  Agartala 

palatana power plant
palatana power plant

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

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

First Published: Sat, November 10 2018. 12:55 IST