The Competition Commission of India (CCI) has given its nod for whose acquisition of 96.42 per cent stake in Jindal Power Limited (JPL) from Jindal Steel and Power Ltd (JSPL) in 31 December 2021?

The Competition Commission of India (CCI) has given its nod for whose acquisition of 96.42 per cent stake in Jindal Power Limited (JPL) from Jindal Steel and Power Ltd (JSPL) in 31 December 2021? Correct Answer Worldone

The correct answer is Worldone.

Key Points

• The Competition Commission of India (CCI) has given its nod for Worldone’s acquisition of a 96.42 per cent stake in Jindal Power Limited (JPL) from Jindal Steel and Power Ltd (JSPL) on 31 Dec 2021.
• JPL is primarily engaged in the business of generating thermal power by using coal as a fuel source.
• Worldone will pay a consideration of ₹7,401 crores to JSPL for the acquisition.

Important Points

• Of the ₹7,401 crores, about ₹3,015 crores will be paid in cash and the balance ₹4,386 crores will be settled by way of assumption and takeover of liabilities and obligations of JSPL in relation to inter-corporate deposits and the capital advances extended by JPL to JSPL.
• JPL is primarily engaged in the business of generating thermal power by using coal as a fuel source.

Additional Information

• Competition Commission of India:
  • It is the chief national competition regulator in India.
  • It is a statutory body within the Ministry of Corporate Affairs and is responsible for enforcing the Competition Act, 2002 in order to promote competition and prevent activities that have an appreciable adverse effect on competition in India
  • CCI also approves combinations under the act so that two merging entities do not overtake the market.
  • The commission was established on 14 October 2003.
  • It became fully functional in May 2009 with Dhanendra Kumar as its first Chairman.