POWERGRID approves merger of 13 wholly owned subsidiaries

Power Grid Corporation of India Limited (POWERGRID) has approved the merger and amalgamation of 13 wholly owned subsidiary special purpose vehicles (SPVs). The decision was taken by the Board of Directors at its meeting held on 20 December 2025 and disclosed to stock exchanges under the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015.

The approved restructuring involves the merger of 11 subsidiary companies into two larger subsidiaries. The move follows in principle approval granted earlier by the Central Electricity Regulatory Commission (CERC) in May 2025.

CERC had issued orders on 30 May 2025 in Petition Nos. 500/MP/2024 and 439/MP/2024, allowing POWERGRID to amalgamate 18 project specific SPVs set up under the tariff based competitive bidding framework into two entities. The regulatory approval was subject to several conditions, including final clearance from the Ministry of Corporate Affairs (MCA), transfer of assets and liabilities at book value, maintenance of separate accounts for each transmission project, and endorsement of transmission licences after completion of the merger.

In its exchange filing, POWERGRID said the Board has approved the merger and the related schemes of arrangement, subject to approvals from statutory, regulatory and government authorities. The company will now file the approved schemes with the National Company Law Tribunal (NCLT) and the MCA for final approval under the Companies Act, 2013.

POWERGRID reiterated that the objective of the restructuring is to consolidate business operations into larger unified entities, reduce the number of group companies, improve operational and management efficiency, and simplify administrative processes. The consolidation is focused on transmission projects awarded through competitive bidding, including renewable energy evacuation schemes.

Once approvals from NCLT and MCA are obtained, the company will submit the same to CERC to complete the remaining regulatory requirements. The mergers will be effective from the appointed date of 01 April 2024, following which the transferor SPVs will be dissolved. All assets, licences and projects will vest with the two transferee entities, POWERGRID Vataman Transmission Limited and POWERGRID Khavda II-C Transmission Limited.

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