MCA Approves Merger of 17 POWERGRID Subsidiaries into Two EntitiesIn February 2026, the Ministry of Corporate Affairs (MCA) approved two composite schemes of arrangement for the merger and amalgamation of 17 wholly-owned subsidiary companies of Power Grid Corporation of India Limited (PGCIL or POWERGRID) into two other wholly-owned subsidiaries, as part of a major corporate restructuring initiative.
- The mergers will be effective from April 1, 2024, which has been set as the official date for the amalgamation.
Overview of the Merger Schemes:
Objective: The restructuring simplifies the corporate structure, reduces costs, improves operational and financial efficiency, and strengthens execution of large transmission projects.
Merger Framework: All assets, liabilities, and operations will be transferred to the respective transferee companies, and the Ministry of Corporate Affairs (MCA) orders will be binding on the shareholders and creditors of both the transferor and transferee entities.
Merger Structure: The restructuring consolidates project-specific Special Purpose Vehicles (SPVs) into larger functional entities through two distinct schemes: Scheme Group-A and Scheme Group-B.
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- Scheme Group-A: Under this scheme, 12 wholly-owned subsidiaries will be merged into ‘POWERGRID Khavda II-C Transmission Limited’.
- Scheme Group-B: Under this scheme, 5 wholly-owned subsidiaries will be merged into ‘POWERGRID Vataman Transmission Limited’.
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