The Competition Commission of India, which regulates fair trade and oversees competition practices in India, has given its approval for the planned consolidated of Kalyani Alstom Power and Alstom Bharat Forge Power. The two companies are jointly owned by domestic industrial player Kalyani Group through its flagship firm Bharat Forge Ltd and French industry giant Alstom Power Holdings SA. India's fair trade regulator will allow the surviving company, Alstom Bharat Forge Power, to absorb Kalyani Alstom Power, much to the delight of the two companies.

In a December 10 order, the Indian fair trade regulator said, "The proposed combination is not likely to have appreciable adverse effect on competition in India."

CCI also observed that once the deal will be consumed, Alstom Bharat Forge Power will remain ultimate control jointly with Alstom Power Holdings and Bharat Forge. Alstom owns a 51% ownership stake in the steam turbines and generators maker, and Bharat Forge holds the remaining stake. CCI also said that the business activities of both companies does not raise any antitrust concerns, citing that there is no horizontal overlap on between the two.

"The products of ABFPL (Alstom Bharat Forge Power Ltd) and KAPL (Kalyani Alstom Power Ltd) would be complementary to each other for the setting up of turbine islands for sub-critical and super-critical technology based power plants. However, KAPL has not started any business activity and has also stopped construction of its manufacturing plant and ABFPL has also not supplied any products to KAPL," the fair trade regulator said.

CCI said the manufacturing facililty of Alstom Bharat Forge Power is set to proceed in 2015.

Both the boards of the French and Indian companies had given their endorsement on the merger back in October. The boards' approval endorsed the merger as soon as clearance had been obtained from the fair trade regulator, NDTV said in its report.