CCI Approves 100% Acquisition of Lanco Amarkantak Power Limited | Chhattisgarh | 27 Mar 2024
Why in News?
Recently, the Competition Commission of India (CCI) has approved 100% acquisition of Lanco Amarkantak Power Limited by Adani Power Limited.
Key Points
- The Adani Power Limited (Acquirer), a part of the Adani Group, is a company incorporated under the laws of India.
- It is engaged in the business of thermal power generation in India.
- It operates its thermal power plants across multiple states in India, including Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Jharkhand and Madhya Pradesh.
- Adani group is a global integrated infrastructure player with businesses in key industry verticals - resources, logistics and energy.
- The Lanco Amarkantak Power Limited (Target), a part of the Lanco Group, is engaged in the business of thermal power generation in India.
- It is currently undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC).
- The proposed combination relates to the acquisition of 100% equity share capital of the Target by the Acquirer.
Competition Commission of India (CCI)
- It is a statutory body of the Government of India responsible for enforcing the Competition Act, 2002, it was duly constituted in March 2009.
- The Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act) was repealed and replaced by the Competition Act, 2002, on the recommendations of the Raghavan committee.
Insolvency and Bankruptcy Code, 2016
- It is considered as one of the biggest insolvency reforms in the economic history of India.
- This was enacted for reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximization of the value of assets of such persons.
Corporate Insolvency Resolution Process (CIRP)
- The CIRP in India, governed by IBC, is a time-bound process aimed at resolving the financial distress of a corporate debtor while maximizing the value of its assets.
- The primary objective of the procedure is to ensure the revival of a financially distressed company.
- And in cases where the revival of the company is not possible it ensures an orderly liquidation of the assets of the distressed company that has been declared as a corporate debtor.