The Competition Commission of India (CCI) has approved the proposed acquisition of GVK Power (Goindwal Sahib) Limited by Punjab State Power Corporation Ltd (PSPCL), the commission said on January 2.
"CCI approves the proposed acquisition of 100% shareholding of GVK Power (Goindwal Sahib) Limited by Punjab State Power Corporation Ltd," CCI, which comes under the Ministry of Corporate Affairs, said in a post on X.
With a 100 percent shareholding of GVK Power, PSPCL will now also own the 540 MW private thermal power plant at Goindwal Sahib in Tarn Taran. On January 1, addressing a press conference Punjab Chief Minister Bhagwant Mann said PSPCL purchased the plant for Rs 1,080 crore.
"This is the country’s cheapest purchase of any power plant. The deal stands at Rs 2 crore per MW. The project, which came up seven years ago, is left with a life of 18 years," Mann told reporters.
In July, PSPCL emerged as the sole bidder to acquire the thermal power plant. The utility holds a power purchase agreement with the power unit, ensuring a secured power supply for 25 years.
The Punjab CM said with the purchase of the plant, the state will save Rs 300-500 crore in generation cost as compared to what it was paying to GVK Group.
GVK Power, the private company operating the thermal power plant, entered into corporate insolvency last year.
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