CCI Approves Acquisition Of 100% Shares Of GVK Power Limited By PSPCL

Utkarsh Classes Last Updated 03-01-2024

CCI Approves Acquisition Of 100% Shares Of GVK Power Limited By PSPCL

Industry 4 min read

The Competition Commission of India (CCI) has approved the proposed acquisition of 100% shareholding of GVK Power (Goindwal Sahib) Limited by Punjab State Power Corporation Limited.

About Punjab State Power Corporation Limited (PSPCL):

Established: February 1, 1959
Punjab State Power Corporation Limited (PSPCL) was formerly known as Punjab State Electricity Board (PSEB).
PSPCL is a wholly owned undertaking of the Government of Punjab.
It was a statutory body of the Electricity Supply Act, 1948.
PSEB was “de-grouped” into two separate entities by a notification issued by the Government of Punjab on April 16, 2010.
Punjab State Power Corporation Limited (PSPCL) and
Punjab State Transmission Corporation Limited (PSTCL).

About GVK Power (Goindwal Sahib) Limited:

Established: December 1997
GVK Power (Goindwal Sahib) Limited, incorporated in December 1997.
GVK is a wholly owned subsidiary of Energy Limited. It is a subsidiary of GVK Power & Infrastructure Limited.
It is engaged in power generation through 540 coal based thermal power plants.
The proposed combination relates to the resolution plan involving acquisition of 100% of GVK Power Limited by PSPCL after being declared the successful resolution applicant.

About Competition Commission of India (CCI):

Established: March 2009
Headquarters: New Delhi
President: Ravneet Kaur
CCI is a statutory body of the Government of India responsible for the enforcement of the Competition Act, 2002.
The Competition Act, 2002 replaced the Monopoly and Restrictive Trade Practices Act, 1969 based on the Raghavan Committee's recommendation.
CCI aims to create a strong competitive environment in the country through:
Ensuring practices that do not negatively impact competition.
Promoting and maintaining competition in markets.
To protect the interests of consumers.
Ensuring freedom of trade.

About Competition Act, 2002:

The Competition Act came into effect in 2002. It was amended by the Competition (Amendment) Act, 2007.
This follows the philosophy of modern competition laws.
The Act forbids enterprises from engaging in anti-competitive agreements and abusing a dominant position. These have or are likely to have a material adverse effect on competition in India.
CCI and Competition Appellate Tribunal were established in accordance with the provisions of the Amendment Act.
In 2017, the government replaced the Competition Appellate Tribunal with the National Company Law Appellate Tribunal.

Structure of CCI:

The Central Government appoints a Chairman and six members to the CCI.
The Competition Commission of India currently functions with a Chairman and two Members.
The Commission is a quasi-judicial body that advises statutory authorities and also addresses other matters.
Its Chairman and other members are whole-time members.