Oil & Natural Gas Corporation’s Tripura Power Project, which aims to solve the entire North-East region’s power shortage, recently got financial backing from the Power Financial Corporation (PFC)..ONGC Tripura Power Corporation (OTPC) is in the process of establishing a power plant fuelled by natural gas at Palatana in Tripura State. Built to generate 726.6 MW, the cost is an estimated Rs. 3,418 crores ($735 million), proposed to be funded in a debt equity ratio of 75:25. The project is a joint venture between ONGC, Infrastructure Leasing and Financial Services Limited (IL&FS) and the Government of Tripura..PFC a financial institution and Navrathna PSU, set up to finance the Power sector has entered into a deal by lending Rs. 2,244 crores ($515 million) on a long term basis to ONGC. FoxMandal Little’s Delhi-based Partner, B.N. Banerjee, with his team comprising Senior Associate Rajesh Sehgal and Associate Milli Chatterjee, advised PFC. Rajesh Sehgal told Bar & Bench, “It was challenging, since ONGC being a Navratna company, is on the Board of the OTPC. For us it was the first time we had done a deal with ONGC and the captive natural gas based power stations interconnected with the power project.” FML were the sole counsel on the transaction..Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.
