Tata Power floats trading arm

Tata Power Company has floated a wholly owned subsidiary for the power trading business and applied to the Central Electricity Regulatory Commission (CERC) for a countrywide trading licence.

Christened Tata Power Trading Company, the subsidiary has been incorporated with a paid up capital of around Rs 2 crore.

Confirming the move Mohan Gurunath, vice president of Tata Power Company said, "The company was formed recently."

The move comes on the heels of CERC turning down the application by Tata Power for the grant of a trading licence on technical grounds.

The company had applied for a trading licence in November saying that it was forming a trading subsidiary.

The CERC took the view that that since the licence can be granted only to an applicant, the arm would have to be formed first which in turn would apply for a licence.