New Delhi: In a major corporate restructuring move, Power Grid Corporation of India Limited (BSE: 532898, NSE: POWERGRID) has received final approval from the Ministry of Corporate Affairs (MCA) to consolidate its vast network of project-specific subsidiaries. The move is aimed at boosting operational efficiency, simplifying governance, and optimizing resource management.
The MCA, vide its orders dated January 27, 2026, has sanctioned two separate "Composite Schemes of Arrangement for Merger/Amalgamation." This approval, received by the company today, paves the way for merging 17 wholly-owned subsidiary companies ("Transferor Companies") into just 2 other wholly-owned subsidiaries ("Transferee Companies").
The Big Consolidation: Details of the Two Merger Schemes
The restructuring is split into two distinct groups or schemes, each merging a set of subsidiaries into a single, larger entity.
Scheme/Group A: The Khavda RE Consolidation
This scheme merges 12 project-specific subsidiaries into POWERGRID Khavda RE Transmission System Limited.
List of 12 Subsidiaries Merging (Transferor Companies):
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POWERGRID Khavda II-C Transmission Limited
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POWERGRID Khavda II-B Transmission Limited
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POWERGRID KPS2 Transmission System Limited
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POWERGRID KPS3 Transmission Limited
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POWERGRID ERWR Power Transmission Limited
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POWERGRID Raipur Pool Dhamtari Transmission Limited
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POWERGRID Dharamjaigarh Transmission Limited
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POWERGRID Bhadla Sikar Transmission Limited
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POWERGRID Ananthpuram Kurnool Transmission Limited
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POWERGRID Koppal Gadag Transmission Limited
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POWERGRID Neemrana Bareilly Transmission Limited
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POWERGRID Bidar Transmission Limited
Transferee Company: POWERGRID Khavda RE Transmission System Limited
Scheme/Group B: The Vataman Consolidation
This scheme merges 5 project-specific subsidiaries into POWERGRID Vataman Transmission Limited.
List of 5 Subsidiaries Merging (Transferor Companies):
13. POWERGRID Bhadla III Transmission Limited
14. POWERGRID Beawar Dausa Transmission Limited
15. POWERGRID Ramgarh II Transmission Limited
16. POWERGRID Bikaner Neemrana Transmission Limited
17. POWERGRID Sikar Khetri Transmission Limited
Transferee Company: POWERGRID Vataman Transmission Limited
Key Effective Date and Implications
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Appointed Date: The mergers will be effective from April 1, 2024. This means all financial and operational accounts will be consolidated as of this date.
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Binding Order: The MCA's order is binding on all shareholders and creditors of the involved companies.
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Strategic Rationale: This consolidation is expected to:
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Reduce administrative complexity by moving from 19 separate legal entities (17 transferor + 2 transferee) to just 2 operating entities for these projects.
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Enable better financial management and pooling of resources.
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Simplify compliance and reporting requirements.
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Enhance corporate governance with a leaner subsidiary structure.
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Since all entities involved are 100% owned by Power Grid, there is no change in ultimate ownership or control, ensuring a seamless transition.
About Power Grid Corporation of India Limited:
A 'Maharatna' Central Public Sector Enterprise, Power Grid is the backbone of India's electricity transmission network, responsible for planning, implementing, operating, and maintaining the country's interstate and inter-regional transmission system.