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 has officially notified stock exchanges about its board meeting scheduled for March 17, 2026, to consider crucial financial proposals including a comprehensive market borrowing program for fiscal year 2026-27 and declaration of 4th interim dividend for FY 2025-26. The company has issued formal notifications to both National Stock Exchange of India Limited and BSE Limited under Regulation 29 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Board Meeting Agenda and Key Proposals

The board will deliberate on two significant financial initiatives during the scheduled meeting. The primary focus encompasses the market borrowing program for the upcoming fiscal year and potential interim dividend distribution for current shareholders.

Market Borrowing Strategy Details

The proposed market borrowing program for fiscal year 2026-27 will involve multiple funding instruments including bonds, term loans, and commercial paper. Power Finance Corporation plans to access both domestic and international markets to diversify its funding sources and optimize capital structure for operational requirements.

Regulatory Compliance and Trading Window Closure

In accordance with the company's Code of Practices & Procedures for Fair Disclosure of Unpublished Price Sensitive Information, Power Finance Corporation has implemented immediate closure of the trading window for equity shares and listed debt securities including tax-free bonds.

The official communication was signed by Company Secretary & Compliance Officer Manish Kumar Agarwal and formally submitted to both major stock exchanges for information and record purposes, ensuring full regulatory compliance during the decision-making process.