New Delhi, The Competition Commission of India (CCI) has granted approval for the acquisition of GVK Power (Goindwal Sahib) Limited by Punjab State Power Corporation Ltd (PSPCL), according to an announcement on January 2.
PSPCL, with a 100% shareholding of GVK Power, will now become the sole owner of the 540 MW private thermal power plant located at Goindwal Sahib in Tarn Taran. Punjab Chief Minister Bhagwant Mann revealed in a press conference on January 1 that PSPCL secured the plant for Rs 1,080 crore.
In a statement, CCI mentioned, “CCI approves the proposed acquisition of 100% shareholding of GVK Power (Goindwal Sahib) Limited by Punjab State Power Corporation Ltd.”
Mann emphasized the significance of the deal, stating, “This is the country’s cheapest purchase of any power plant, standing at Rs 2 crore per MW. The project, established seven years ago, has a remaining lifespan of 18 years.”
PSPCL emerged as the sole bidder for the thermal power plant in July, holding a power purchase agreement ensuring a secured power supply for 25 years.
The purchase is expected to result in substantial savings for the state, with Mann highlighting an estimated reduction of Rs 300-500 crore in generation costs compared to payments made to GVK Group.
GVK Power, the private entity operating the thermal power plant, faced corporate insolvency last year.
