National Energy Trading & Services Ltd., (NETS), formerly Lanco Power Trading Ltd., has expanded its business activity to cover trading of coal both imported and domestic and other energy resources and sees its business in for upward surge as the volumes are poised for growth.

The Director of Operations, NETS, Mr.M.N.Ravi Shankar, told Business Line “the merchant sale of power will increasing move to trading companies, who will not only help discover price but also play a role in facilitating power trading for State utilities, independent power producers (IPPS) and captive power producers, with additional power to offer.” These arrangements are through bilateral contracts and power exchanges.

The company, which is a subsidiary of publicly traded Lanco Infratech Ltd., closed last year with revenues of Rs. 2,520 crore and a profit of Rs. 14.5 crore, facilitating trading of about 6,000 million units in 2010-2011, which accounts for nearly 13 per cent of the total power traded in the country, estimated to be 45,000 mu, he explained. “We are likely to touch 8,000 mu this year,” he said.

The trading company, NETS, operates in 20 States in the country and now has operations in Australia, China, Indonesia, Nepal, Singapore and few other countries. The company parent-Lanco Infratech had earlier this year acquired coal mines down under in Australia, through its arm Lanco Resources, and rights to mine a mega coal block in Chattisgarh.

The average unit cost traded last year was about Rs.4.20 per unit. This may come down a bit as the supply is likely to go up during the year. The demand for power goes up in December-January and up to summer months, he said.

The company is moving its corporate office from Delhi to Gurgaon.

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