PSPCL clears final hurdle; CCI approves acquisition of 100 percent shareholding of GVK Power
Kanwar Inder Singh/ royalpatiala.in News/ January 2,2024
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.
CCI is headed by former Punjab cadre IAS officer Ravneet kaur. Ravneet Kaur joined the Competition Commission of India as Chairperson on 23rd May 2023. She has rich and varied experience of working with Government of India and Government of Punjab for over 34 years as a member of the Indian Administrative Service.
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.
PSPCL clears final hurdle; CCI approves acquisition of 100 percent shareholding of GVK Power .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.
ABOUT CCI
The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, follows the philosophy of modern competition laws. The Act prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and M&A), which causes or likely to cause an appreciable adverse effect on competition within India.
The objectives of the Act are sought to be achieved through the Competition Commission of India, which has been established by the Central Government with effect from 14th October 2003.
It is the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade in the markets of India.
The Commission is also required to give opinion on competition issues on a reference received from a statutory authority established under any law and to undertake competition advocacy, create public awareness and impart training on competition issues.
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