NTPC plans to acquire 5% equity in Power Exchange of India
State-run power giant NTPC is mulling acquiring 5 per cent equity stake in Power Exchange of India Ltd (PXIL) that provides various electricity trading options, a senior official said.
The PXIL is India’s first institutionally promoted power exchange, which has been providing various electricity trading solutions and connecting buyers as well sellers since 2008.
A senior official told PTI that NTPC has plans “to buy up to five per cent equity stake in PXIL. This decision has been taken in view of the government’s intention to increase the share market to 25 per cent per cent of total electricity supply in India by 2023-24”.
Asked whether NTPC would acquire more equity than 5 per cent in PXIL, the official explained that the NTPC cannot buy more than 5 per cent equity stake in the PXIL as it could also be a seller or buyer on the trading platform.
According to the data available on the Ministry of Corporate Affairs portal, the authorised share capital of the PXIL is Rs 120 crore and paid-up capital is Rs 58.47 crore. The PXIL was incorporated on February 20, 2008.
The government intends to expand the share of the spot power market in total electricity supply in the country to 25 per cent by 2023-24. This is likely to be part of the draft National Electricity Policy (NEP).
An expert group set up by the Power Ministry has recommended expanding the size of short-term power trading from about 5 per cent at present to 25 per cent by 2023-24. The Ministry of Power is reportedly vetting the recommendation of the expert panel submitted in October 2021.
According to the Central Electricity Regulatory Commission (CERC), the share of short-term market accounted for 10 per cent of of the total electricity procured in 2019-20. The remaining 90 per cent of total power supply was procured mainly by discoms via long-term contracts and short-term intra-state transactions.
As per industry data, short-term trading is around 14-15 per cent of total power supply in India and most of that is bilateral PPAs (power purchase agreements) while the exchange trading is 5 per cent. The government intends to increase this 5 per cent to 25 per cent by 2023-24.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
