The Government of India has approved Power Grid Corporation of India Limited’s proposal to merge 17 of its subsidiaries into two consolidated entities, clearing the way for a major restructuring of the country’s largest power transmission utility. The approval allows the company to move ahead with implementing the consolidation plan.
The restructuring represents one of the most significant organizational changes undertaken by Power Grid Corporation in recent years. The initiative is aimed at streamlining operations, simplifying the corporate structure, and strengthening overall administrative and operational efficiency.
Under the approved plan, multiple subsidiary operations will be consolidated into a more compact corporate framework. As India’s central transmission utility, Power Grid Corporation has been working towards this consolidation to improve operational synergies and enhance coordination across its business segments.
The reduction in the number of subsidiaries from 17 to two entities is expected to substantially simplify the company’s organizational structure. The consolidation is designed to reduce administrative complexity, streamline decision-making, enhance operational coordination, and improve the efficiency of resource allocation.
Given Power Grid Corporation’s status as a state-owned enterprise, the merger proposal required government approval. The clearance reflects the government’s support for the company’s strategic efforts to optimize its subsidiary structure and strengthen operational capabilities.
With the approval now in place, Power Grid Corporation can proceed with the implementation of the merger. The process will involve integrating the operations, assets, and functions of the 17 subsidiaries into the two designated entities, with careful coordination to ensure a smooth transition.
The restructuring is expected to position Power Grid Corporation for improved operational efficiency while continuing to fulfill its role as India’s premier power transmission company.
