The recent notification of Electricity Act 2003 has paved way for commoditising electricity.
But given the phased manner in which the reforms will sweep through the industry, it looks unlikely that the futures trading as envisaged earlier by the industry and even the Forward Markets Commission panel report would kick off in near future.
The government had proposed to allow derivatives trading in electricity, freight and commodity indices.
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The Forward Markets Commission (FMC) had sent the proposal to a standing parliamentary committee for its approval.
The move to permit futures and options trading in electricity follows the permission to commoditise electricity and bring down the tariff rates in the country.
The Electricity Bill