In a move to further streamline business consolidation processes, the Ministry of Corporate Affairs (MCA) has proposed an expansion of the fast-track merger framework to include a broader range of joint venture (JV) entities. Currently, fast-track mergers under the Companies Act, 2013, are restricted to small companies and holding-subsidiary arrangements. The new proposal seeks to extend these simplified procedures to eligible joint ventures, thereby promoting ease of doing business and reducing the time and costs involved in corporate restructuring.

The proposed expansion will allow joint ventures that meet specific financial and operational criteria to bypass the lengthy National Company Law Tribunal (NCLT) approval process, opting instead for regional director clearance. This includes requirements related to net worth thresholds, regulatory compliance history, and stakeholder consent mechanisms. The MCA intends to maintain safeguards to ensure creditor protection and transparency, including mandatory disclosures and fast-track filings on public platforms.

This reform is part of a broader agenda to support corporate agility and strategic consolidation, particularly in sectors such as infrastructure, energy, and manufacturing, where JVs play a crucial role. By allowing smoother mergers, the government hopes to encourage more collaborative ventures, attract private investment, and foster stronger business synergies within India’s growing economy. The MCA is currently seeking public comments on the draft rules before finalizing the expanded framework.