INDIA: NCDEX in JV with NTPC, NHPC to launch power exchange

Commodity bourse National Commodity and Derivatives Exchange Ltd (NCDEX) is setting up a power exchange in joint venture with leading power players like NTPC and NHPC at an estimated cost of Rs 15-20-crore.

"We have received formal approval from NTPC and NHPC for setting up the power exchange. We are hopeful of more players joining us as joint venture partners. All JV partners will get an equal share in equity participation," NCDEX Managing Director and CEO P H Ravikumar told reporters here on Saturday.

Other partners for the exchange include Power Grid Corporation of India Ltd and Power Finance Corporation.

NCDEX has applied for necessary clearances from the
Central Electricity Regulatory Commission (CERC) and is hopeful of getting the same by September, he said.

The regulator was finalising the norms for setting up the exchanges, after which a formal approval for the power exchanges may be given. Power exchanges have been proposed by the government to develop a transparent market for power trading.

CERC had in February issued guidelines for grant of permission to operators wanting to set up and operate a power exchange in the country. It proposed multiple power exchanges in the country.

: The India Economic Times

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