Three government-owned power sector companies, along with India's largest information technology firm, Tata Consultancy Services have agreed to set up an energy exchange that will rival Indian Energy Exchange, which recently started its operations.
NTPC and NHPC, which together own a third of India's electricity generation, have roped in state-owned power sector financing firm, Power Finance Corporation for the joint venture along with TCS. "We (referring to NTPC and NHPC together) are the largest power generators and we hope to create a market for this," said NTPC Chairman and Managing Director R S Sharma.
The four companies have filed an application with the Central Electricity Regulatory Commission to form the joint venture and are hoping to complete the formalities in one month, he added.
Initially, the four partners are planning to invest Rs 50-100 crore (Rs 500 million-Rs 1 billion) towards the proposed power exchange.
TCS, part of the Tata group, will hold majority stake of 50.02 per cent in the proposed company and the power utilities would pick up 16.66 per cent equity each, said a senior official of one of the public sector company.
The power exchange will carry out only day-ahead trading in the beginning and will later take up month-ahead and year-ahead trading of power.