New Delhi: India’s top electricity generating firm NTPC will sign an agreement with NHPC, PFC and TCS by March-end to set up the country’s third power exchange, after it parted ways with NCDEX upon failing to reach consensus on certain key issues.
NTPC chairman and managing Director T Sankaralingam told PTI that an agreement for floating the power exchange would be signed before this month-end.
“The exchange will be formed. An agreement will be signed between three state-run firms NTPC, NHPC and PFC and TCS,” he said, without giving the reasons for parting ways with National Commodity and Derivatives Exchange.
NTPC planned to partner NCDEX to float a power exchange. The exchange proposed to rope in seven promoters, including National Stock Exchange, Power Grid Corp and Tata Power.
However, the proposed venture faced hiccups with the power sector regulator Central Electricity Regulatory Commission (CERC), barring Power Grid from participating in any power exchange. CERC had also asked NTPC to form a separate subsidiary for floating the power exchange.
Sources said NTPC and NCDEX could not reach an agreement on key issues, including management of the exchange.
NCDEX CEO and managing director P H Ravikumar said the commodity exchange is in talks with corporates to partner in the power exchange and exuded confidence that the proposed venture would materialise in the coming months.
While NTPC and NCDEX are in advanced stages of signing agreements for their respective bourses, Multi Commodity Exchange MCX last month said its Indian Energy Exchange (IEX) would commence commercial operations within two months.
IEX, the country’s first power trading platform, was launched in November 2007 by MCX, with promoters such Power Trading Corp, Tata Power, Infrastructure Development Finance Company, Reliance Energy, Rural Electrification Corp, Adani Enterprises and Lanco Infratech.