CCI Greenlights Punjab Government's Acquisition of Private Thermal Plant

The Competition Commission of India (CCI) has given the green light to the Punjab government's acquisition of the private thermal plant, Goindwal Sahib Thermal Power Plant.

In an official announcement, CCI stated, "CCI approves the proposed acquisition of 100 per cent shareholding of GVK Power (Goindwal Sahib) Ltd by Punjab State Power Corporation Ltd (PSPCL)." Punjab Chief Minister Bhagwant Mann proudly declared on Monday that the state government had made history by purchasing the Goindwal Sahib Thermal Power Plant for ₹1,080 crore, marking the most economical deal of its kind in the country.

This landmark move marks the first instance of a state government purchasing a thermal plant, with Chief Minister Mann revealing that the 540-MW thermal plant would be named after Guru Amardass, the third Guru of Sikhs.

PSPCL, a fully-owned undertaking of the Government of Punjab, emerged from the unbundling of the erstwhile Punjab State Electricity Board (PSEB) on April 16, 2010. The PSEB, initially formed on February 1, 1959, under the Electricity Supply Act, 1948, was split into two separate entities – Punjab State Power Corporation Limited (PSPCL) and Punjab State Transmission Corporation Limited (PSTCL).

GVK Power (Goindwal Sahib) Ltd, established in December 1997, is a wholly-owned subsidiary of GVK Energy Ltd, itself a subsidiary of GVK Power and Infrastructure Ltd.

The proposed combination pertains to the Resolution Plan, involving the 100% acquisition of GVK Power (Goindwal Sahib) Limited by PSPCL once it is declared as the successful resolution applicant. The approval from CCI solidifies the Punjab government's strategic move towards enhancing its power generation capabilities through this significant acquisition.

HBL