Power Finance Corporation Limited has officially announced the strike off and dissolution of its wholly owned subsidiary Ghogarpalli Integrated Power Company Limited (GIPCL), effective March 16, 2026. The dissolution has been executed under section 248 of the Companies Act 2013 by the registrar of companies.

Company Background and Purpose

GIPCL was incorporated on May 22, 2008, under the Companies Act, 1956, functioning as a Special Purpose Vehicle (SPV). The subsidiary was established with the specific objective of developing an Ultra Mega Power Project with a capacity of 4000 MW in the state of Odisha.

Project Closure and Regulatory Approval

The company subsequently decided to close the Ultra Mega Power Project, leading to the initiation of the dissolution process. The Ministry of Power, Government of India, granted its approval for the closure and striking off of the company name on November 27, 2025.

Following the ministerial approval, Power Finance Corporation filed the required documents for closure and strike off with the Ministry of Corporate Affairs (MCA). The MCA subsequently approved the dissolution on March 16, 2026.

Material Impact Assessment

Power Finance Corporation has clarified that GIPCL was not classified as a material subsidiary of the company. This classification indicates that the dissolution is unlikely to have significant financial or operational impact on the parent company's overall business operations.

Regulatory Compliance

The dissolution process has been conducted in full compliance with the provisions of section 248 of the Companies Act 2013. Power Finance Corporation has duly informed both the National Stock Exchange of India Limited and BSE Limited about this corporate development through official communication dated March 17, 2026.

The strike off represents the formal conclusion of GIPCL's corporate existence and marks the end of the Ultra Mega Power Project initiative in Odisha that was originally conceived in 2008.

Power Finance Corporation has announced the completion of transfer of NES Pune East New Transmission Limited to Power Grid Corporation of India Limited for a consideration of ₹8.04 crore, as disclosed in its regulatory filing under Regulation 30.

Transaction Structure and Details

The transferred entity, NES Pune East New Transmission Limited, was a wholly owned subsidiary of PFC Consulting Limited, which itself is a wholly owned subsidiary of Power Finance Corporation Limited. The subsidiary was established specifically for the development of "Network Expansion Scheme in Maharashtra for removal of Transmission Constrains in Pune Region-I (765/400 Kv Pune East)".

Regulatory Compliance and Transaction Nature

According to the company's disclosure, the transaction does not fall within the purview of related party transactions, as Power Grid Corporation of India Limited does not belong to the promoter or promoter group. The sale is also not classified as a slump sale in nature.

The consideration for the sale and transfer was determined in accordance with guidelines issued by the Ministry of Power, Government of India. The transferred subsidiary had negligible contribution to Power Finance Corporation's turnover, revenue, income, and net worth during the last financial year.

Strategic Impact

This divestment aligns with Power Finance Corporation's strategy to optimize its asset portfolio and focus on core financing activities in the power sector. For Power Grid Corporation of India Limited, the acquisition strengthens its transmission network in the Maharashtra region, particularly in addressing transmission constraints in the Pune area.

The transaction represents a strategic asset transfer that enables specialized transmission infrastructure to be operated by India's largest transmission utility, ensuring efficient grid operations and maintenance.