Global infrastructure partners (GIP) and Tripura government look to buys IL&FS share in ONGC.

 
The stakeholders have decided to buy stakes held by IL&FS(infrastructure leasing and financial services Ltd)  by shareholder pact, according to which offload of shares to stakeholders under distress conditions at 20% discount on the Rs 10 share face value. The stake of IL&FS is to be proportionately divided among the shareholders.
Oil and Natural Gas Corp. Ltd has a 50% stake in the project. The IL&FS holds 26%, and GIP has a 23.5% stake, with the Tripura government holding a 0.5% stake. The 726.6 megawatts (MW) project is an integral part of the government’s efforts to develop infrastructure in the North-East and has been touted as the single largest investment in the region.
OTPC is a profit-making firm and pays dividends to its stakeholders. In OTPC, the Tripura-based gas power project, IL&FS has a 26% share. In the agreement, it is written that whenever IL&FS faces duress, it will sell its stake to its shareholders, said a person aware of the development requesting anonymity. ‘An IL&FS spokesperson declined to comment.’
M.K. Sinha, managing partner, and co-head, GIP India, did not respond to queries. The government has replaced the previous management of project an integral part of the govt’s efforts to develop infra in North-East IL&FS with an Uday Kotak-led board of directors to oversee a resolution process. IL&FS is using multiple asset monetization processes to raise funds and repay debt. For example, sale of its securities business, renewable energy assets, roads portfolio, and EPC capabilities.
As stated in shareholder contract, the existing stakeholders have the first right of refusal. ONGC, GIP and Tripura government have written to IL&FS  that its stake is to be acquired. The issue was mutually discussed among the existing stakeholders, and the view was shared to the IL&FS, As told by the authorities.