IL & FS: Tripura to start talks to acquire IL & FS shares in Palatana project: Minister

The Tripura government will soon begin a dialogue to purchase 26% of the capital of the Palatana Gas Thermal Power Project from Infrastructure Leasing and Financial Services (IL & FS).

The 726.6 MW gas-fired power project, managed by CGSB Tripura Power Company (OTPC), was formally launched in 2014 as a CGSB joint venture, IDFC, IL & FS and Tripura Government.

"The State of Tripura has a 0.5% stake in the project, and the central government has informed us that IL & FS will be offloading its entire 26% stake. 'open a dialogue with them to buy all the shares because the Palatana energy project is a very profitable company,' Minister of Justice Ratan Lal Nath told reporters.

The Ministry of Energy has allocated more than 58% of the energy from the Palatana Project to the northeastern states. On Tripura's share in project-related production, the state government sells 160 MW every day to neighboring Bangladesh.

IL & FS bought 26% shares at a price of Rs 291.20. With the increase in value, shares are now estimated at 300 crores, said Nath. The minister said the value of the shares would probably be appreciated in the future.