New Delhi, India: State-owned Power Grid Corporation of India Limited has received final approval from the Ministry of Corporate Affairs (MCA) to merge 17 of its wholly owned subsidiaries into two larger entities, marking a major step toward streamlining its corporate structure and improving operational efficiency.
In orders dated January 27, 2026, the MCA approved two separate composite schemes of arrangement that will consolidate multiple project-specific subsidiaries into POWERGRID Khavda RE Transmission System Limited and POWERGRID Vataman Transmission Limited, according to a company statement released on Wednesday.
The restructuring is aimed at simplifying governance, optimizing resource utilization, and reducing administrative complexity across Power Grid’s transmission projects.
Two Merger Schemes Approved
Under the first scheme, 12 subsidiaries will be merged into POWERGRID Khavda RE Transmission System Limited. These include entities associated with transmission projects in Khavda, Raipur, Dharamjaigarh, Bhadla, Ananthapuram, Koppal, Neemrana, Bidar, and other regions.
The second scheme will see five subsidiaries consolidated into POWERGRID Vataman Transmission Limited, covering transmission projects linked to Bhadla, Beawar, Ramgarh, Bikaner, Neemrana, Sikar, and Khetri.
With the completion of both schemes, the number of separate legal entities involved in these projects will be reduced from 19 to just two.
Effective Date and Impact
The mergers will take effect from April 1, 2024, meaning all financial and operational accounts of the transferor companies will be consolidated from that date. The MCA’s approval is binding on all shareholders and creditors of the companies involved.
Power Grid said the consolidation will enable improved financial management, streamlined compliance and reporting, and stronger corporate governance through a leaner subsidiary framework. Since all entities involved are fully owned by Power Grid, there will be no change in ownership or management control.
About Power Grid
Power Grid Corporation of India Limited is a ‘Maharatna’ central public sector enterprise and forms the backbone of India’s electricity transmission network. The company is responsible for planning, developing, operating, and maintaining the country’s interstate and inter-regional power transmission system.