The Competition Commission of India (CCI) has approved the proposed acquisition of 100% shareholding of GVK Power (Goindwal Sahib) Limited by Punjab State Power Corporation Ltd.

The Punjab State Power Corporation Ltd, is a fully owned undertaking of the Government of Punjab. The erstwhile Punjab State Electricity Board (PSEB), was a statutory body formed on 01st February, 1959 under the Electricity Supply Act, 1948. The PSEB was “unbundled” by the Government of Punjab vide Notification No. 1/9/08-EB(PR)196 dated 16th April, 2010 into two separate entities – Punjab State Power Corporation Limited (PSPCL) and Punjab State Transmission Corporation Limited (PSTCL).

The GVK Power (Goindwal Sahib) Limited, is incorporated in December 1997, is a wholly owned subsidiary of GVK Energy Limited which in turn is the subsidiary of GVK Power and Infrastructure Limited. It is engaged in power generation through a 540 coal based thermal power plant.

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. (Proposed Combination).

Detailed order of the CCI will follow.

Competition approval for acquisition of power company by a state-owned utility enables resolution-plan transfer of full shareholding. The Competition Commission has approved the proposed acquisition of 100% shareholding of GVK Power (Goindwal Sahib) Limited by Punjab State Power Corporation Ltd under a resolution plan, whereby PSPCL, a state-owned successor of the former electricity board, will acquire the target once declared the successful resolution applicant, effecting full ownership transfer of the coal-based thermal power generating company; a detailed CCI order will follow.