Power Finance Corporation Limited has announced the strike off and dissolution of its wholly owned subsidiary Sakhighopal Integrated Power Company Limited (SIPCL) effective March 9, 2026. The dissolution was carried out under Section 248 of the Companies Act 2013 by the registrar of companies.

Company Background and Purpose

SIPC was incorporated on May 21, 2008, under the Companies Act, 1956, as a Special Purpose Vehicle (SPV) with the objective of establishing an Ultra Mega Power Project. The subsidiary was not classified as a material subsidiary of Power Finance Corporation Limited.

Project Closure and Regulatory Approvals

The company was established specifically for developing the 4000 MW power project in the state of Odisha. However, it was subsequently decided to close the project, leading to the initiation of the subsidiary's dissolution process.

The Ministry of Power, Government of India, granted its approval for the closure and striking off of the company's name on November 27, 2025. Following this regulatory approval, the required documents for closure and strike off were filed with the Ministry of Corporate Affairs (MCA).

Strike Off Process Timeline

Regulatory Compliance

The strike off was executed in accordance with Section 248 of the Companies Act 2013, which provides the framework for voluntary striking off of companies. Power Finance Corporation Limited has informed both the National Stock Exchange of India Limited and BSE Limited about this corporate development through its Company Secretary and Compliance Officer.

The dissolution of SIPCL marks the formal closure of the Ultra Mega Power Project initiative in Odisha, bringing an end to the subsidiary's operational existence after nearly 18 years since its incorporation.

Power Finance Corporation Limited has completed the transfer of its wholly owned subsidiary to Maharashtra State Electricity Transmission Company Limited following a successful bidding process, marking a significant corporate restructuring move in the power transmission sector.

Transaction Details

The transfer involves Saswad Transmission Limited, which was established specifically for the development of a 400/220 kV AIS Substation at Saswad in District Pune, Maharashtra. The subsidiary was originally a wholly owned entity of PFC Consulting Limited, which itself is a wholly owned subsidiary of Power Finance Corporation Limited.

Financial and Regulatory Aspects

Maharashtra State Electricity Transmission Company Limited emerged as the successful bidder in the competitive process. The transaction was completed for a total consideration of ₹3.79 crore as per the Share Purchase Agreement. The subsidiary's contribution to the parent company's turnover, revenue, income, and net worth during the last financial year was described as negligible.

Transaction Classification

Power Finance Corporation Limited has clarified several important aspects of this transaction:

• The transaction does not fall within the purview of related party transactions
• Maharashtra State Electricity Transmission Company Limited does not belong to the promoter or promoter group
• The transaction is not in the nature of a slump sale
• The consideration for sale and transfer of the subsidiary was determined in accordance with guidelines issued by the Ministry of Power, Government of India

Corporate Governance Compliance

The announcement was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations. The disclosure was signed by Manish Kumar Agarwal, Company Secretary and Compliance Officer, and communicated to both the National Stock Exchange of India Limited and BSE Limited.

This strategic divestment reflects Power Finance Corporation's ongoing portfolio optimization efforts in the power transmission infrastructure sector, transferring specialized transmission assets to state-level transmission utilities through transparent competitive processes.