Chennai: Brookfield has announced that is had filed the preliminary placement memorandum, in terms of which India Infrastructure Trust (InvIT), and will invest Rs 13,000 crore to acquire the East-West Pipeline.
As a part of the transaction, the InvIT will acquire 100 per cent equity interest in Pipeline Infrastructure Private Limited (PIPL) which currently owns and operates the pipeline.
Pursuant to this acquisition by Brookfield, the existing pipeline usage agreement was reworked as such the reserved capacity is reduced to 33 MMSCMD against the 56 MMSCMD.
Further, any unutilised capacity payment by RIL will be the difference between Rs 500 crore a quarter and actual revenue earned by PIPL. RIL will continue to be entitled to transport gas, either by itself or of any customers, free of cost against any outstanding unutilized capacity payments, said the agreement.
At the current approved final tariff of Rs 71.66/MMBTU, if the average volume of gas transported is 22 MMSCMD, RIL will not be liable to make unutilised capacity payments.
The next review of tariff in April 2020 will also consider upward revision to tariff arising from determination of lower revised capacity of the pipeline.