PTC ropes in Financial Technologies, MCX for power exchange JV

Our Corporate Bureau
24 May 2007

Mumbai: The Power Trading Company (PTC) has roped in Financial Technologies (India) Ltd and the Multi Commodity Exchange of India (MCX) for setting up a national electronic electricity exchange.

The proposed exchange, Indian Energy Exchange Ltd (IEEL), has sought approval of the Central Electricity Regulatory Commission and a licence to begin short-term power trading.

Short-term power trading or trading on day requirement accounts for 15 per cent of the total power trading in the country.

"We have envisaged interest to set up and run a power exchange in accordance to the guidelines issued by CERC for establishing and running a power exchange,'''' reports quoting IEEL director Joseph Massey said.

Massey said the exchange would begin trading after consultations with power sector participants and necessary clearances.

IEEL will have current authorised capital of Rs1 crore, which could be enhanced to Rs25 crore depending on the need. While the holding pattern is yet to be finalised, he said, the combined stake of FT and MCX in the power exchange would be not less than 51 per cent.