In a significant development, the Competition Commission of India (CCI) has granted approval to Punjab State Power Corporation Ltd (PSPCL) for the acquisition of GVK Power (Goindwal Sahib) Limited. This approval signals the complete transfer of ownership of the 540 MW private thermal power plant located in Goindwal Sahib, Tarn Taran, to PSPCL.
PSPCL Chief Minister Bhagwant Mann announced on January 1 that the acquisition was sealed at an unprecedentedly low rate of Rs 2 crore per MW, totaling Rs 1,080 crore for the entire plant. Mann highlighted the significance of this deal, showcasing the plant’s remaining operational lifespan of 18 years, established seven years ago.
The inception of this acquisition dates back to PSPCL emerging as the sole bidder for the financially beleaguered thermal power plant in July. Beyond securing a reliable power supply for the state, this move is projected to result in substantial cost savings. Mann estimates savings ranging from Rs 300-500 crore in comparison to prior payments made to GVK Group.
The CCI’s approval of this acquisition follows GVK Power’s corporate insolvency last year, clearing the path for the state to ensure its power supply and markedly curtail expenditure.
