New Delhi, April 2 (IANS): India Infrastructure Fund II will acquire 23.5 percent stake worth about Rs.426 crore in ONGC Tripura Power Company (OTPC), jointly promoted by ONGC, IL&FS Energy Development Company (IEDCL) and the government of Tripura, state-run Oil and Natural Gas Corp said on Wednesday.

ONGC said in a statement here that after the transaction, the shareholding in OTPC will be: ONGC 50 percent, IEDCL 26 percent, the Tripura government 0.5 percent and India Infrastructure Fund II 23.5 percent.

"This consummates the equity structure as was envisaged at the time of setting up the project," ONGC said.

OTPC has been formed to implement a gas-based 726.6 MW thermal power project at Palatana, Tripura. Its scope is to utilise the stranded gas reserves of ONGC in Tripura towards development of the northeastern states.

The project is backed by a long-term gas supply agreement with ONGC, while the power off-take is on a long term basis with the 7 northeast states.

OTPC also owns 26 per cent stake in North East Transmission Company (NETCL), a joint-venture company of OTPC, Power Grid Corporation of India and the seven northeastern states.