NTPC eyes to acquire 5% in Power Exchange of India.
- ByStartupStory | January 3, 2022
According to reports, National Thermal Power Corporation Ltd.(NTPC) is eyeing to acquire a 5% equity stake in Power Exchange of India that has a share capital of Rs 120 cr and incorporated in 2008. The GOI aims to expand its share in the spot power market in the total electricity supply in the country to 25% from today’s 5% by 2023-24.
According to a report by PTI, a senior official said that the NTPC aims “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”.
The Power Exchange of India Ltd.(PXIL) is the first institutionally promoted power exchange in India, which provides various electricity trading solutions and connects buyers as well as sellers. The NTPC is a state-run power giant. The short-term trading is around 14-15 percent of India’s total power supply while the exchange trading is at 5 percent. The government wants to turn this 5% to 25% by 2023-24.
The share of short-term market added upto for 10 percent of the total electricity procured in 2019-20. The rest 90 percent of total power supply was acquired mainly by discoms through long-term contracts and short-term intra-state transactions.
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