New Delhi: The Competition Commission of India (CCI) has approved the acquisition of shares of Odisha Power Generation Corporation Ltd (OPGC) by Odisha Hydro Power Corporation Limited (OHPC) under Section 31(1) of the Competition Act, 2002.
OHPC, a PSU wholly-owned and controlled by the Odisha government, is engaged in the business of generation of power from renewable sources namely, hydroelectric and solar power.
As per reports, OPGC is a state-owned joint venture enterprise with the State government holding 51 per cent shareholding and the remaining 49 per cent shareholding held by AES Corporation, U.S.A through AES OPGC Holding and AES India Private Limited. It is engaged in the business of generation of power from coal based thermal power plants as well as mini hydro power projects.
The proposed combination involves the acquisition by OHPC of 49% equity shares in OPGC from AES OPGC Holding and AES India, pursuant to the Share Sale and Purchase Agreement.
Last week, the Tata Power Company Limited (TPCL) acquired bids for two electricity distribution companies (discoms) in Odisha—the Western Electricity Supply Utility of Odisha Ltd (WESCO) and the Southern Electricity Supply Utility of Odisha Ltd (SOUTHCO). TPCL has won a 25-year license for distribution and retail supply of power.
The Letter of Intent issued to the TPCL on December 3 mentions that TPCL will acquire 51% of the ordinary share capital of the operating company and GRIDCO will continue to own 49% of the ordinary share capital.
Notably, TPCL has also committed to collect arrears of Rs 300 crore and Rs 100 crore in WESCO and SOUTHCO, respectively in the next five years.