The Competition Commission of India (CCI) said it has cleared the proposed acquisition of a 100% stake in an arm of GVK Energy by Punjab State Power Corporation Ltd (PSPCL).
The anti-trust regulator said PSPCL, a fully owned undertaking of the Punjab government, intends to take over GVK Power (Goindwal Sahib), which has been undergoing an insolvency resolution process.
PSPCL has reportedly offered Rs 1,400 crore to lenders for the acquisition of the GVK power unit. This is the first such takeover of a private electricity generator by a state-run distribution 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.
Incorporated in December 1997, GVK Power (Goindwal Sahib) is a wholly-owned subsidiary of GVK Energy, which in turn is an arm of GVK Power and Infrastructure. It is engaged in power generation through a coal-based thermal power plant having a capacity of 540 megawatt, the regulator said.