Mumbai: India may soon have a third power exchange, providing one more avenue for distribution companies and industries to draw power at competitive rates. The Central Electricity Regulatory Commission (CERC) on Thursday proposed to grant registration to Pranurja Solutions Limited (PSL), to establish and operate a power exchange under clause (v) of Regulation 16 of the Power Market Regulations. The CERC has directed that a notice under Clause (vi) of Regulation 16 of the Power Market Regulations will be issued, inviting further suggestions or objections to the proposal.
Currently, there are two power exchanges, including the Indian Energy Exchange Limited (IEX) and Power Exchange India Ltd (PXIL), which have been operational since 2008. The IEX's daily volume is 230 to 240 million units, while PXIL handles 7 million units of transactions.
The PSL was incorporated by a consortium of PTC India Limited, BSE Investments Limited and ICICI Bank Limited, with a fully paid-up share capital of Rs 1,00,000 and with shareholding patterns of 49.00 per cent, 41.10 per cent and 9.90 per cent respectively. Thereafter, the PSL, which had filed a petition seeking the CERC’s approval for the establishment of power exchange, executed the shareholder agreement (SHA) and the share subscription agreement (SSA) with its consortium members. Through the SSA, the members infused equity share capital in the PSL, aggregating Rs. 25.50 crore.
The promoter companies, including PTC India Limited, BSE Investments Limited (including Nominees) and ICICI Bank Limited now have shareholdings of 25 per cent, 25 per cent and 9.99 per cent respectively. In addition, there are 11 other investors/ shareholders (six from the originally proposed shareholders and five new), each with a shareholding of 5 per cent or less.
“After considering the present shareholding pattern and documentary evidence submitted by the Petitioner, the Commission is prima facie satisfied that the Petitioner Company, as an applicant for registration of Power Exchange, is complying with the shareholding pattern under Regulation 19 of the Power Market Regulations,’’ said the CERC in its order.
Further, it said the PSL fulfilled the net worth requirements of Rs 25 crore in terms of Regulation 18(i) of the Power Market Regulations. Presently, its total net worth is Rs 50 crore.