Tata Power, one of India’s largest integrated power companies, received approval from the Mumbai Bench of the National Company Law Tribunal (NCLT) on Thursday for the composite scheme of arrangement between Coastal Gujarat Power (CGPL) and Tata Power and their respective shareholders.
The scheme provides for the amalgamation of CGPL with Tata Power which will result in streamlining the corporate structure and consolidation of assets and liabilities of CGPL within Tata Power.
Tata Power claims that this arrangement will lead to a more efficient utilisation of capital for the enhanced development and growth of the consolidated business in one entity.
Further benefits include availing of easier financial support, bringing operational efficiencies, and enabling cost savings through legal entity rationalization and consolidation, Tata Power said in a statement.
The thermal power plant CGPL, is a wholly-owned subsidiary of Tata Power and operates the 4000-MW UMPP in Mundra, Gujarat.