Infrastructure Leasing and Financial Services (IL&FS), which is heavily in debt, has finalised the sale of its 26percent ownership in ONGC Tripura Power Company (OTPC) to Gas Authority of India Limited (GAIL) for Rs 1,227 crore.
As part of an ambitious attempt to raise funds to repay debt, IL&FS has started selling assets. The ailing infrastructure business has addressed a debt of around Rs 3,656 crore, which was part of its total debt of Rs 99,000 crore as of October 2018.
After the cash-strapped firm failed to meet a number of its obligations, The government formed a new board in October 2018 to streamline operations and lower its massive debt. According to the most recent update from the company's new board, the group has resolved around Rs 52,000 crore in debt, compared to a target of roughly Rs 61,000 crore. The IL&FS Group owned a 26 percent ownership in OTPC through two subsidiaries: IL&FS Energy Development Company Ltd held 12 percent and IL&FS Financial Services Ltd held 14 percent. The group received Rs 319 crore in total from GAIL for its 26 percent ownership in the two enterprises.
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