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The Competition Commission of India (CCI) announced on January 2 that it has approved Punjab State Power Corporation Limited's (PSPCL) bid to acquire a 100% stake in GVK Energy.
The antitrust regulator said Punjab government-owned PSPCL plans to take over GVK Power (Goindwal Sahib), which is undergoing a free liquidation process. PSPCL has reportedly offered Rs 1,400 crore to lenders to purchase GVK power units. This is the first time a state-owned power distribution company has acquired a private power generation company.
“The proposed combination relates to the Resolution Plan involving 100% acquisition of the GVK Power (Goindwal Sahib) Limited by PSPCL once it is declared as the successful resolution applicant,” the CCI said in a statement.
Established in December 1997, GVK Power (Goindwal Sahib) is a wholly owned subsidiary of GVK Energy and a subsidiary of GVK Power and Infrastructure. The director said the company generates electricity through a coal-fired power plant with a capacity of 540 megawatts.
The Competition Commission of India (CCI) is India's leading national competition regulator. It is a statutory body under the Ministry of Corporate Affairs. It is responsible for enforcing the Competition Act 2002 to promote competition and prevent anti-competitive practices in India. The CCI investigates cases to determine whether they hurt competition.
