FML helps OTPC step on gas PFC pumps in 2244 crore

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.