After dilly-dallying for nearly five years, promoters of National Power Exchange have decided to wind up the company. National Power Exchange is jointly promoted by NTPC, PFC and NHPC and private sector Tata Consultancy Services.
Following the promoters' decision, electricity regulator CERC has withdrawn the permission granted to the exchange for starting power trading business.
At present, there are two power bourses in the country, Indian Energy Exchange (IEX) and Power Exchange India.
The Central Electricity Regulatory Commission (CERC) had given its approval to National Power Exchange for operating a bourse way back in July, 2009.
The promoters, however, last month decided to wind up the company.
In their meeting on March 21, promoters had recommended voluntary winding up of the company. On the same day, the bourse's board decided not to renew the licence for setting up the operation of power exchange beyond March 31.
The regulator was informed about these developments on March 28.
"Since the group of promoters of NPEX (National Power Exchange) has recommended for voluntary winding up of the company and board of NPEX has decided not to renew the licence for setting up and operation of the power exchange, the Commission is of the view that the permission accorded to NPEX for setting up and operation of power exchange should be withdrawn," CERC order said.
Consequently, CERC has withdrawn the permission granted to NPEX effective from April 1, according to its order dated April 17.
When contacted, a TCS spokesperson said the exchange's board took the decision to wind up after closely looking at the power trading environment in the country.
"After closely analysing the environment surrounding power trading in India, the Board of directors have recommended winding up the National Power Exchange and have intimated the regulator, CERC, of this intent," the spokesperson said in an e-mailed statement.
TCS holds substantial stake in NPEX.
NTPC had decided to exit the proposed power exchange and had also received permission for the same from the Power Ministry.
Seeing no progress in setting up the business, CERC in December 2012 had sought explanation from National Power Exchange. It had also asked the entity to place on record the progress made and definite action plan indicating the firm date for starting operations.
Source- Business standard