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

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.