Business Daily from THE HINDU group of publications
Saturday, Jan 26, 2008
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Business Daily from THE HINDU group of publications Saturday, Jan 26, 2008 ePaper | Mobile/PDA Version |
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Power Agri-Biz & Commodities - Commodity Exchanges
Anil Sasi New Delhi, Jan. 25 The NTPC-NCDEX led mega Power Exchange proposal is facing birth pangs, with the venture yet to make a formal application before the regulator for a license despite being in the works for over five months now. This comes even as rival Financial Technologies-PTC India Ltd-led India Energy Exchange — the country’s first power bourse — looks all set to kick-off operations by February this year. The delays in the NTPC-NCDEX venture, which also has on board the National Stock Exchange (NSE), National Hydroelectric Power Corporation (NHPC), and Power Finance Corporation (PFC), are being attributed to perceived differences between promoters on issues of management control, according to sources. The Central Electricity Regulatory Commission (CERC) has earlier asked NTPC, which had submitted an initial application in July last year seeking permission to set up a power exchange, to incorporate a new company first before applying for a license. When contacted, a CERC official confirmed that the NTPC-NCDEX combine was still to revert to the Commission on the proposal as of Thursday. ‘Procedural’ issuesAccording to sources, the imbroglio stems from differences in issues of management control between NSE and the other promoters of the venture, besides issues such as the appointment of the top brass of the venture, leading to a logjam of sorts in formalising the venture. When contacted, an NTPC official said that “some procedural issues” were holding up the venture and that efforts were on to sign an agreement for the joint venture over the next few days. The delays come in the wake of another major setback for the venture, when CERC had disallowed one of the potential members — transmission major Power Grid Corporation of India Ltd (PGCIL) — from participating in the venture. CERC had ruled that a system operator like PGCIL cannot be part of any Exchange.
The country’s first power exchange — the India Energy Exchange Ltd, promoted by Financial Technologies India and PTC India Ltd — was formally cleared in November. The venture, which has on board Tata Power, Reliance Energy, Rural Electrification Corp, Infrastructure Development Finance Company, Adani Enterprises, and Lanco Infratech as co-promoters, claims to be on course to commence operations in February. A power exchange (PX) functions on the lines of commodity exchanges and provides a platform for buyers, sellers and traders of electricity to enter into spot and forward contracts. It would also provide a payment security mechanism to buyers and sellers. Two consortia in race to set up power exchanges More Stories on : Power | Commodity Exchanges | Corporate Disputes | NTPC Ltd
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