In a recent order, CERC approve the petition for registration to establish and operate Power Exchange under Power Market Regulation “The PMR 2010” to PSL, a consortium of PTC India Ltd, BSE Investment Limited (BSEIL) and ICICI Bank (ICIC) on condition to comply with power market regulations before regulator grants registration.
India has two power exchanges- India Energy Exchange (IEX) and Power Exchange India Limited (PXIL). Power exchange facilitates over-the-counter sale and purchase of power via different types of contracts- Day-ahead, Term-ahead, Renewable Energy Certificate and recently introduced Real-Time electricity market.
Background
PSL, having its registered office in Mumbai, as a consortium of PTC India Limited (PTC), BSE Investments Limited (BSEIL) and ICIC Bank (ICIC) filed a petition on 2019 for grant of registration and operate a power exchange in India under regulation of PMR 2010 (Power Market Regulation). After publishing a public notice regarding its application as per PMR 2010 regulation, inviting public comments and objection, EX and PXIL filed their objection. With due reference of comments and objection received, PTC india has submitted its updated worth and shareholding patterns as follows.
| Sl No. | Entity/ Company Name | No of Equity Shares | Amount Invested (INR) | Percentage Shares (%) |
| 1 | PTC India Ltd | 12,50,00,000 | 12,50,00,000 | 22.62 |
| 2 | BSE Investments Limited | 12,50,00,000 | 12,50,00,000 | 22.62 |
| 3 | ICIC Bank Ltd | 4,99,50,000 | 4,99,50,000 | 9.04 |
| 4 | Greenko Energies Pvt Ltd | 2,50,00,000 | 2,50,00,000 | 4.52 |
| 5 | RPG Group | 2,50,00,000 | 2,50,00,000 | 4.52 |
| 6 | Varanium Dynamic Trust | 2,50,00,000 | 2,50,00,000 | 4.52 |
| 7 | Jindal Power Ltd | 2,00,00,000 | 2,00,00,000 | 3.62 |
| 8 | Chamaria Enterprises Pvt Ltd | 1,30,50,000 | 1,30,50,000 | 2.36 |
| 9 | Lord Navnit Dholakia | 50,00,000 | 50,00,000 | 0.90 |
| 10 | Manikaran Power Limited | 1,75,00,000 | 1,75,00,000 | 3.17 |
| 11 | HV Impex Private Ltd | 2,50,00,000 | 2,50,00,000 | 4.52 |
| 12 | Marcados Energy Markets India Pvt Ltd | 1,75,00,000 | 1,75,00,000 | 3.17 |
| 13 | Rachana Raj Transport Associates Pvt Ltd | 2,00,00,000 | 2,00,00,000 | 3.62 |
| 14 | PSL Infratech Pvt Ltd | 70,00,000 | 70,00,000 | 1.27 |
| 15 | WBSEDCL (West Bengal State Electricity Distribution Company Ltd) | 1,75,00,000 | 1,75,00,000 | 3.17 |
| 16 | UHBVN (Uttar Pradesh Bijli Vitaran Nigam Ltd) | 1,75,00,000 | 1,75,00,000 | 3.17 |
| 17 | SJVN Ltd | 1,75,00,000 | 1,75,00,000 | 3.17 |
| Total | 55,25,00,000 | 55,25,00,000 | 100 |
After allotment of additional equity from WBSEDCL, UHBVN, SJVN the net worth of PSL stands at INR 55.25 Crore. Thus petitioner has met the net worth requirement of Rs 25 Crore as per regulation 18(i) of the PMR 2010. Also commission notes that the petitioner has complied with the requirements as per regulation 16 of the PMR 2010.
Commission’s Analysis
After analyzing different regulation of PMR 2010, commission found the following compliance thereof by the petitioner.
In compliance of regulation 14 of the PMR 2010, the petitioner company filed the present petition for obtaining registration as a power exchange. Thus the petitioner is eligible for making an application for registration of power exchange.
Also in compliance of PMR 2010, petitioner company floated public notice for any suggestion or comments. According to PMR 2010, petitioner submitted following documents along with the application i.e.
i.Memorandum and Articles of Association of the company making the application
ii.In case of a consortium of companies, a formal agreement amongst the members of the consortium to set up a Power Exchange shall be submitted
iii.Details of the existing business of the consortium members
iv.Copies of the Annual Report and/or audited accounts of the applicant for the last three years, to the extent applicable
v.A Project Report containing the following details: (a) Constitution of the proposed Power Exchange; (b) Funding sources of the proposed Power Exchange; (c) Management and Administrative structure of the proposed Power Exchange; (d) Infrastructural facilities available/proposed to be acquired by the Power Exchange
Also petitioner submitted updated shareholder holding pattern and net worth of INR 55.25 Crore in compliance with PMR 2010.
After analyzing all compliance, commission has agreed to grant approval for registration of the power exchange and operate for a period of 25 years from the date of commencement of operation unless such registration revoked or cancelled. The commencement of operation of the power exchange is subject to approval of the bye-laws, Rules and Business rules and the technology including trading software in accordance with various provisions of the PMR 2010.
