CCI Okays Odisha Govt’s Acquisition of US Company’s Stake in State Utility

The Competition Commission of India (CCI) has allowed Odisha government to take full control of state-owned joint venture (JV) utility company Odisha Power Generation Corporation Ltd (OPGC) through acquisition of its remaining 49 per cent shares from US company AES Corporation.

The corporate affairs ministry notified that “CCI approves acquisition of shares of Odisha Power Generation Corporation Ltd (OPGC) by Odisha Hydro Power Corporation Ltd (OHPC) under Section 31(1) of the Competition Act, 2002.”

OHPC is a public sector undertaking (PSU) wholly-owned and controlled by the Government of Odisha. The company has been engaged in the business of power generation from renewable sources namely, hydroelectric and solar power.

While, OPGC is a state-owned JV entity with the Government of Odisha holding 51 per cent shareholding and the remaining 49 per cent shareholding held by AES Corporation, USA through AES OPGC Holding and AES India Pvt Ltd. It has been engaged in the business of generation of power from coal based thermal power plants as well as mini hydro power projects.

The proposed combination involved the acquisition by OHPC of 49 per cent equity shares in OPGC from AES OPGC Holding and AES India, pursuant to the share sale and purchase agreement.

Earlier in the month of August, the government has derailed the Adani Power Ltd’s move to buy AES stake by invoking its right of first refusal (RoFR).

Meanwhile, OHPC is expected to buy AES shareholding in OPGC at an estimated amount of around Rs 1,000 crore.