POWERGRID expands subsidiary merger plan to 28 SPVs

Power Grid Corporation of India Limited (POWERGRID) has approved an expanded consolidation of its subsidiaries, with 28 wholly owned subsidiaries to be merged into two existing wholly owned entities. The decision was taken at a board meeting on March 19, 2026, replacing an earlier, smaller proposal.

The consolidation programme began in December 2025, when the board approved the merger of 11 subsidiaries into two entities. These subsidiaries were project-specific special purpose vehicles (SPVs) formed under the tariff-based competitive bidding framework, with the objective of reducing the number of group entities, improving operational efficiency, and simplifying governance structures.

In early 2026, the Ministry of Corporate Affairs (MCA) approved two composite schemes of merger involving 17 subsidiaries into POWERGRID Khavda II-C Transmission Limited and POWERGRID Vataman Transmission Limited. These schemes carry an appointed date of April 1, 2024.

Expanded scope of consolidation

The March 19 decision increases the scope to 28 subsidiaries, more than doubling the original number. The two transferee entities remain unchanged. The consolidation covers transmission SPVs, including those linked to renewable energy evacuation projects.

All mergers remain subject to statutory, regulatory, and government approvals. POWERGRID stated that further details will be disclosed as the schemes progress. Upon receiving approvals from the National Company Law Tribunal (NCLT) and MCA, the transferor SPVs will be dissolved, with their assets, licences, and projects transferred to the two receiving entities.