National Hydroelectric Power Corporation has given its approval to enter into a MoU for forming a JV for development and operation of the power exchange.

The share holding of NTPC is 16.67%, NHPC is 16.67%, PFC is 16.66% and that of TCS is 50%. Share holding of TCS will be brought down to 16.66% after incorporation of the JVC by off loading their share to other private entities issue of fresh equity capital.

This will be the third power exchange, which will be formed as the Central Electricity Regulatory Commission has given final clearance on June 10th 2008 to the MCX-Financial Technologies promoted Indian Energy Exchange.

It is learnt that, the power exchange will initially trade a day ahead and subsequently also handle transaction for short-term, long-term, round the clock and hourly basis. The exchange will also be able to cash in on the burgeoning demand for power from various states at a time when peak shortages have been in the range of 27,000 MW.