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Our Bureau

Kolkata, Sept 13 Power Exchange of India Ltd (PEI) – a joint venture between National Commodity & Derivatives Exchange (NCDEX) and National Stock Exchange (NSE) will go live in the first week of October.

“We have received the approval of the Central Electricity Regulatory Commission and the exchange will commence operations from the first week of October,” the NCDEX Managing Director and Chief Executive Officer, Mr R. Ramaseshan, told media persons here on Saturday.

“We are in the process of developing software for the power exchange. We will trade on power that is unused by the consumers,” he said.

PEI will be the second power bourse to be operational after the India Energy Exchange (IEE) set up by Financial Technologies group (which controls the Multi Commodity Exchange) and PTC Financial Services, a unit of PTC India Ltd.

Other shareholders in IEE are Adani Power, IDFC, Lanco Infrastructure, Reliance Energy, Rural Electrification Corporation and Tata Power.

The initiative to form a third power exchange was recently taken by NTPC, NHPC, Power Finance Corporation (PFC) and TCS.

According to the joint venture agreement signed last month, TCS will initially hold 50 per cent stake in the company, which will be gradually offloaded to new investors in the future.

NTPC, NHPC and PFC will hold approximately 16 per cent each. The exchange is expected to be operational in the next fiscal.

Meanwhile, NCDEX has informed the Foreign Institutional Investors – Goldman Sachs and Intercontinental Exchange – having interest in the exchange about the Union Government decision to cap FII holding in commodity bourses to five per cent. Goldman and Intercontinental currently hold seven and eight per cent stake respectively in NCDEX.

However, the exchange is yet to devise the means of such reduction.

On possibility of enhancing the equity capital through IPO, Mr Ramaseshan said there were no such plans at the moment.

More Stories on : Power | Commodity Exchanges

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