Capital market regulator SEBI has approved the amalgamation of Reliance Clean Power Pvt Ltd (RCPPL) with Reliance Power Ltd.
The board of private power utility Reliance Power had approved the amalgamation scheme in November. Reliance Power and RCPPL are part of Anil Ambani-led Reliance Group.
SEBI has given its nod for the proposed merger. “...we do hereby convey our ‘No Objection’ with limited reference to those matters having a bearing on listing/ delisting/continuous listing requirements within the provisions of the Listing Agreement, so as to enable the company file the scheme with the Hon’ble High Court,” SEBI said in a letter to the National Stock Exchange (NSE).
The bourse communicated the same to Reliance Power on January 24. The exchange has also approved the scheme.
RCPPL is a step-down wholly-owned subsidiary of Reliance Power held through Reliance CleanGen Ltd and itself. RCPPL is setting up a 45 MW wind power project in Sangli, Maharashtra.
The amalgamation would help reduce managerial overlaps, bring down administrative cost and achieve operational as well as management efficiency, as per the draft scheme of amalgamation proposed to be filed before the High Court.
R-Power is a leading private producer.