Punjab Government's Acquisition of Private Thermal Plant Greenlit by CCI

The Competition Commission of India (CCI) has granted its approval to the Punjab government's acquisition of the Goindwal Sahib Thermal Power Plant, a significant move in the state's energy landscape. Punjab Chief Minister Bhagwant Mann heralded this action as historic, signaling the state's pioneering purchase of a private thermal plant at an unprecedented price tag in the nation's history.

Punjab has ventured into uncharted territory by acquiring the Goindwal Sahib Thermal Power Plant. Chief Minister Bhagwant Mann proudly declared this action as a historic moment, boasting the state's procurement of the plant at a staggering cost of Rs 1,080 crore, marking it as the most cost-efficient acquisition of its kind in the country. The 540-MW thermal plant, soon to be christened after Guru Amardass, the third Guru of Sikhs, will bear testament to Punjab's bold stride into public ownership of crucial energy infrastructure.

Punjab State Power Corporation Ltd (PSPCL), a government-owned entity, now holds the reins of the acquired thermal plant. Established as a fully government-owned enterprise, PSPCL emerged following the unbundling of the erstwhile Punjab State Electricity Board (PSEB) on April 16, 2010. This strategic move divided the PSEB into two separate entities - PSPCL and Punjab State Transmission Corporation Limited (PSTCL), laying the foundation for more focused and efficient operations within the energy sector.

GVK Power (Goindwal Sahib) Ltd, a subsidiary of GVK Energy Ltd, stands as the former proprietor of the thermal plant. Incorporated in December 1997, the company operates as a wholly-owned subsidiary of GVK Energy Ltd, itself a subsidiary of GVK Power and Infrastructure Ltd. The ongoing transaction underlines the Resolution Plan for the complete acquisition of GVK Power (Goindwal Sahib) Limited by PSPCL, signifying a significant shift in ownership once PSPCL assumes the role of the successful resolution applicant.

The CCI's green signal cements this strategic acquisition, marking a historical shift in power dynamics within Punjab's energy sector and setting a precedent for state-level participation in critical energy infrastructure.