Three government owned power sector companies, along with India’s largest information technology firm, Tata Consultancy Services (TCS) have incorporated a joint venture company to set up an energy exchange.
The company which will be called "National Power Exchange Ltd" will operate the power exchange at the national level.
TCS, part of the Tata group, holds majority stake of 50.02% in the company and the three power utilities NTPC Ltd, NHPC Ltd and PFC would pick up 16.67% equity each.
Initially the four partners are planning to invest Rs 50-100 cr towards the proposed power exchange, according to R S Sharma, chairman and managing director of NTPC.
A joint venture agreement for the incorporation of the company was signed in September this year by the four companies after filing an application with the Central Electricity Regulatory Commission (CERC) earlier this year to form the joint venture.
The proposed exchange will rival the two power exchanges already functional in India- Indian Energy Exchange (IEX) and Power Exchange of India (PXI).
IEX which is promoted by the Financial Technologies India Ltd (FTIL) and PTC India, had started its operations in June this year. PXI however, a joint venture between National Stock Exchange of India Ltd (NSE) and National Commodities & Derivatives Exchange Ltd (NCDEX), started its operations in October 2008.
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