Tata Power gets NCLT approval for merger of CGPL into it

Tata Power on Friday said that it has received approval from the Mumbai bench of the National Company Law Tribunal (NCLT) for the merger of Coastal Gujarat Power Ltd (CGPL) with itself.

''Tata Power, one of India's largest integrated power companies, has received approval from the Mumbai bench of NCLT vide its order dated March 31, 2022 for the Composite Scheme of Arrangement between CGPL and Tata Power and their respective shareholders,'' a company statement said.

The CGPL is a wholly-owned subsidiary of Tata Power and operates the 4000 MW UMPP in Mundra, Gujarat.

The Scheme provides for the amalgamation of CGPL with Tata Power and will result in numerous benefits such as streamlining the corporate structure and consolidation of assets and liabilities of CGPL within Tata Power, more efficient utilization of capital for the enhanced development and growth of the consolidated business in one entity, the statement said.

Further benefits include availing easier financial support, bringing operational efficiencies, and enabling cost savings through legal entity rationalization and consolidation, it stated.

The CGPL is one of India's most energy-efficient thermal plants and uses supercritical technology to generate power.