The Hindu Business Line : PTC to talk to pvt players for trading surplus power

POWER Trading Corporation (PTC) will begin negotiations with captive power producers (CPPs) in order to trade the estimated 10,000 MW surplus power that the CPPs have.

Stating this, the PTC Chairman and Managing Director, Mr Tantra Narayan Thakur, told newspersons that trading with power produced by CPPs has now become possible under the Electricity Act 2003. Permission of the State electricity regulatory commissions would have to be taken.

Mr Thakur, who was here in connection with PTC's IPO, said that a `pool' of about 7,000 MW seems to be readily available from the CPPs. He said that PTC in order to fix the tariff for this power would negotiate with those CPPs who can offer over 50 MW power for trading. "Once we have five to seven such producers, we will then perhaps set a benchmark tariff."

PTC, which was set up in 1999, is now the leading provider of power trading services. Mr Thakur said that PTC, which has been identified as the nodal trading agency for cross border trading, is a deemed Government company. Currently, Tata Power Company is its single largest shareholder with a holding of 16.39 per cent.

On the proposed issue, after which PTC would be listed on the BSE and the NSE, Mr Thakur said that the Rs 58.5 crore that the company hoped to raise through its initial public offering would enable it to move into the area of long-term power trading.

"We are right now only in the area of short-term trading covering a period varying between two days to three years... . We have now begun signing agreements for over five years," he said.

While MoUs have been signed for 3,000 MW, another 3,000 MW was under discussion with the independent power producers (IPPs).

Currently, PTC buys the highest amount of power from the eastern region (from where it began its activity in 2000) selling it all over the country. However, till now Tamil Nadu and Uttar Pradesh have remained outside its network. While in case of Tamil Nadu, until recently they were managing their own load (negotiations have begun with them recently), in case of UP payment concerns had made PTC wary.

Currently, four of PTC's promoters — Power Grid Corporation of India Ltd, National Thermal Power Corporation Ltd, Power Finance Corporation Ltd and National Hydro Electric Power Corporation Ltd each have a holding of 13.11 per cent. Of its other shareholders, DVC has the highest stake (after TPL) of 10.9 per cent, followed by IDBI and IDFC, LIC, IFCI and GIC.

The public holding after the issue would be 39 per cent and Mr Deepak Amitabh, Senior Vice-President (Finance) of PTC, was confident that his company would fetch prices at the higher end of the Rs 14 - 16 band set for each equity share of Rs 10.