Tata Power is planning to float a company for power trading. The company has a 10 per cent stake in the state-promoted Power Trading Corporation but has now decided to enter the business in a big way after the passage of the Electricity Act, 2003.
It is planning to approach the Central Electricity Regulatory Commission for securing a licence for power trading.
"Power trading is a business that requires different skills and approach compared to the traditional business of generation and distribution. Therefore, we have decided to float a separate company," said F A Vanadrevala, managing director, Tata Power.
The company will also approach various state regulatory commissions for second distribution licences in select areas.
It will also approach various state electricity boards under the franchisee scheme of Electricity Act 2003.
Meanwhile, the company's joint venture with PowerGrid Corporation has been renamed Powerlinks Transmission.
Tata Power holds a 51 per cent stake in Powerlinks. CERC has approved the transmission licence for Powerlinks.