The Tata Power Company Limited
Case brief
What is this about?
The Competition Commission of India considered a combination registration notice filed by The Tata Power Company Limited regarding its proposed acquisition of a stake in a Special Purpose Vehicle holding the distribution business of NESCO. The Commission approved the combination.
What did the court decide?
Proposed combination approved under Section 31(1) of the Competition Act, 2002.
What the court decided
COMPETITION COMMISSION OF INDIA
(Combination Registration No. C-2021/02/813)
19th March 2021
Notice under Section 6(2) of the Competition Act, 2002 given by The Tata Power Company Limited
CORAM:
Mr. Ashok Kumar Gupta Chairperson Ms. Sangeeta Verma Member
Mr. Bhagwant Singh Bishnoi Member
Order under Section 31(1) of the Competition Act, 2002
- On 8th February 2021, the Competition Commission of India (‘ Commission ’) received a notice under Section 6(2) of the Competition Act, 2002 (‘ Act ’), given by The Tata Power Company Limited (‘ Acquirer ’ / ‘ TPCL ’). The notice was given pursuant to a Letter of Intent dated 29th January 2021 (‘ LOI ’) issued by Odisha Electricity Regulatory Commission (‘ OERC ’) to TPCL and TPCL’s Letter of Acceptance (‘ LOA ’) dated 5th February 2021.
- It is submitted in the notice that in June 2019 OERC initiated the process of sale of 51% of equity share capital of North Eastern Electricity Supply Company of Odisha Limited (‘ Target ’ / ‘ NESCO ’), under Section 20 of the Electricity Act, 2003, through a competitive bidding process. OERC vide its LOI informed TPCL that it is the successful bidder. [Hereinafter, Acquirer and Target are collectively referred to as the ‘ Parties ’.]
Issues for consideration
3 issues framed by the court
Whether the proposed combination between The Tata Power Company Limited and North Eastern Electricity Supply Company of Odisha Limited is likely to cause an appreciable adverse effect on competition.
Whether the proposed Step-Deal combination requires approval under the Competition Act, 2002.
Whether there is horizontal or vertical overlap between the acquirer and the target company in the relevant markets.
Parties & counsel
- petitioner
Competition Commission of India
- respondent
The Tata Power Company Limited
Coram
Ashok Kumar Gupta
Case details
As recorded by the court registry
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