The Competition Commission of India (CCI) has approved Punjab government’s purchase of a private thermal plant, Goindwal Sahib Thermal Power Plant.

“CCI approves the proposed acquisition of 100 per cent shareholding of GVK Power (Goindwal Sahib) Ltd by Punjab State Power Corporation Ltd (PSPCL)”, said a CCI post on X.

‘Creating history’

Punjab Chief Minister Bhagwant Mann had said on Monday that his government had created history by buying a private thermal plant, Goindwal Sahib Thermal Power Plant for ₹ 1,080 crore, at the cheapest price in the country.

This is the first time that a State has purchased a thermal plant. He said the 540-MW thermal plant would be named after Guru Amardass, the third Guru of Sikhs.

Punjab Power Corporation

PSPCL is a fully owned undertaking of the Government of Punjab. The erstwhile Punjab State Electricity Board (PSEB), was a statutory body formed on  February, 1, 1959 under the Electricity Supply Act, 1948.

The PSEB was “unbundled” by the Government of Punjab on April 16, 2010 into two separate entities – Punjab State Power Corporation Limited (PSPCL) and Punjab State Transmission Corporation Limited (PSTCL).

GVK Power (Goindwal Sahib) Ltd was incorporated in December 1997 and is a wholly-owned subsidiary of GVK Energy Ltd, which in turn, is the subsidiary of GVK Power and Infrastructure Ltd. 

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.