May 31, 2008

Press Release

NSE-NCDEX Power Exchange to be a reality soon

Power Exchange India Ltd (PXI), a JV of the National Stock Exchange of India (NSE) and National Commodity & Derivatives Exchange (NCDEX) has obtained the in-principle approval of the Central Electricity Regulatory Commission (CERC) to set up and operate a Power Exchange (PX) and hopes to start operations as soon as possible. In its order dated 27th May'08 the Commission while noting that the applicant prima facie meets the requirements of the guidelines for setting up of the PX has also observed that the experience of promoters in the fields of securities and commodities will lend PXI the capacity and capability of achieving the objectives of setting up and operating a Power Exchange.

PXI would function as a nation-wide spot exchange for Power and will initially trade only day-ahead contracts. Short term trades in Power have shown tremendous growth over the past few years because of the constant need of the generating/distribution entities to balance their long term portfolios with volatility of short term demand. PXI would provide the common market place where all the buyers/sellers of Power across India can transact without any credit risk. Keeping in line with the industry best practices, PXI would follow a demutualized organization structure. It is also in the process of seeking widespread participation from various participants in the power markets so as to benefit from their experience in devising solutions for the power markets in the country. It will provide an open market place for all stakeholders in the Power Sector including generators, distribution companies, Independent Power Producers (IPPs), Captive Power Producers (CPPs), traders etc who can participate either by becoming members of PXI or be becoming constituents of the members. The membership would be thrown open very soon.

The management of PXI will be led by Mrs. Rupa Devi Singh who has been recently appointed as its Chief Executive Officer. Mrs. Singh brings along with her a very strong experience of over 25 years in both, the Power and Financial sectors by virtue of having worked earlier with SBI and CRISIL. She has actively participated in the development of the policy framework within the power sector in the country and has been closely associated with the entire initiative of introducing competitive Power markets in India in her earlier stint as Director- Power Practice with CRISIL Risk and Infrastructure Solutions.