The Hindu Business Line : NSE-NCDEX team, NTPC plan separate power exchanges

New Delhi, April 6 Power major NTPC Ltd and the National Stock Exchange (NSE)-National Commodity and Derivatives Exchange (NCDEX) combine, who were earlier in talks to jointly set up a power exchange, are now in the process of floating separate bourses. With the Financial Technologies-PTC India Ltd-led Indian Energy Exchange (IEX) already off the block, the stage seems set for three major pan-India power exchanges, instead of the two mega bourses envisaged earlier.

According to sources, the NSE-NCDEX combine has already filed an application with the Central Electricity Regulatory Commission (CERC) for setting up its own exchange.

Meanwhile, after much delay, generation major NTPC in the process of signing an agreement with National Hydroelectric Power Corporation (NHPC) and Power Finance Corporation (PFC) to set up its power exchange and talks are under way to rope in Tata Consultancy Services as the software provider for the proposed venture.

Despite having jointly submitted an initial application before the CERC in July last year seeking permission to set up a power exchange, NTPC and the NSE-NCDEX combine were unable to firm up the modalities of jointly floating the new venture and subsequently parted ways earlier this year after failing to reach consensus on issues of management control of the proposed exchange. NSE-NCDEX is now in talks with potential partners for its power exchange and has exuded confidence the proposed venture would materialise soon.

IEX progress

While both NTPC and NSE-NCDEX are firming up plans for their respective bourses, the IEX is in advanced stages of going live, even as its roll-out plans have been delayed by a few months from its initial launch deadline of February 2008. IEX has roped in Scandinavian electricity exchange Nord Pool ASA for operational expertise to ensure that the kick-starting the bourse goes without a hitch. IEX has already got EoIs from some 100 prospective members, including a host of Central generating stations, distribution licensees across States and State generating stations. IEX, which had bagged approval from the Central Electricity Regulatory Commission on August 31 last year for establishing the Power Exchange, has on board IDFC, Adani Enterprises, Reliance Energy, Lanco Infratech, Rural Electrification Corporation (REC), and Tata Power Company as investors, besides Financial Technologies and PTC as its promoters.

A power exchange essentially functions on the lines of commodity exchanges.