Coming soon, country's first power exchange

Indian Energy Exchange Ltd (IEEL), a joint venture of Financial Technologies (India) Ltd (FTIL) and MCX (Multi Commodity Exchange), could be just one step away from getting approval to set up the country's first power exchange.

The exchange, for trading in electricity, is likely to come up by year-end.

"The commission has asked IEEL for additional information. We have also asked them to frame rules to settle disputes. Once this is done, they will get our clearance," said a senior official of the Central Electricity Regulatory Commission.

The commission has asked IEEL to frame bylaws to resolve disputes between the exchange members and the regional load dispatch centres (RLDCs) and get them approved by it.

IEEL has also been asked to submit additional information on its promoters' background and financial history, along with its plans to ring-fence ownership and management of the exchange.

FTIL and MCX will have a 51 per cent stake in the proposed exchange. The rest will be open to the power companies.

The commission has also received an application from the country's largest power generating company, NTPC, to set up another power exchange in collaboration with National Commodity & Derivatives Exchange and National National Hydroelectric Power Corporation.