The
Competition Commission of India on Tuesday, January 2, gave its nod to Punjab State Power Corporation’s proposed acquisition of GVK Power (Goindwal Sahib) Ltd.
GVK Power (Goindwal Sahib) is a wholly-owned subsidiary of GVK Energy Ltd, which in turn is the subsidiary of GVK Power and Infrastructure Ltd. The combination involves the acquisition of 100% stakeholding of GVK Power (Goindwal Sahib) Ltd by Punjab State Power Corporation Ltd (PSPCL).
"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." a statement from CCI said.
The Punjab State Power Corporation Ltd, a wholly-owned entity of the Government of Punjab, will take over GVK Power (Goindwal Sahib) Limited, a subsidiary of GVK Energy Limited engaged in power generation through a 540 MW coal-based thermal power plant.
In July last year, PSPCL had filed a bid to take over the 540 MW Goindwal thermal power plant in Tarn Taran after corporate insolvency proceedings were initiated against its owner GVK Power. Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.
