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CCI approval to Ushdev-Gupta Coal India deal

Fair trade regulator CCI has approved wind power maker Ushdev Windpark's proposed purchase of wind energy business of Gupta Coal India, saying the deal will not adversely effect competition

As per the proposed deal entered in August, this year, Ushdev Windpark would acquire "14.4 MW operational wind power projects business" of Gupta Coal comprising of wind power generation units in Maharashtra and Rajasthan.

In an order dated October 3, Competition Commission of India (CCI) said "the proposed combination is not likely to have an appreciable adverse effect on competition in India and, therefore, the Commission hereby approves the proposed combination under...the (Competition) Act".

CCI observed that post the acquisition, the share of Ushdev Windpark along with its subsidiaries, in the total installed power generation capacity and in the total installed wind power generation capacity would still remain small.

This share would be small in Maharashtra, Rajasthan, as well as at the all India level, CCI said.

"It has been stated in the notice that upon completion of the proposed combination, GCIPL ( Gupta Coal India Private Ltd)/ GIIPL (Gupta Infrastructure India Private Ltd) will cease to be in the business of generation and selling of wind power," CCI added.

As per the details in CCI order, Gupta Coal would be merged with Gupta Infrastructure under an internal corporate restructuring plan.

Ushdev Windpark is engaged in generation and sale of wind power in the state of Tamil Nadu, while Gupta Coal is in the business of trading of coal and wind power business with its windmills located in Rajasthan and Maharashtra.

Ushdev Windpark had approached CCI for its approval last month.

Source: PTI