Power Minister Sushil Kumar Shinde today said that the launch of the country's second electricity exchange would send positive signals for fresh investment in the power sector.
Shinde was speaking after inaugurating the Power Exchange India Limited (PXIL), which will be a platform for trading electricity and ensuring adequate price for suppliers.
"Due to transparency in operations, the power exchange will send a stronger signal for bringing fresh investment to the power sector," Power Minister Sushil Kumar Shinde said while speaking on the occasion of the launch.
The first electricity exchange, India Energy Exchange (IEX), which started operations in June this year, is trading around 12,000 Mwh everyday.
IEX is promoted by Financial Technologies (India) Ltd and PTC India Ltd.
The minister said, "Leading opinion makers of the market believe that power trade will slowly and surely move over the 'exchange' platform. The market has become transparent and neutral with counter-party guarantees."
Shinde pointed out, "Since electricity in the 'Power Exchange' can be traded through standard contracts of a very short duration up to one hour, it is going to become a very powerful tool for optimising resources."
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