July 17, 2008

Indian Energy Exchange ( IEX ), India 's first power exchange, was formally launched by Shri Sushil Kumar Shinde, Hon'ble Union Minister for Power, at a function held in the Capital. Promoted by Financial Technologies India Ltd. (FTIL) and Power Trading Corporation (PTC), India 's first-ever, nationwide, automated and online electricity trading platform went live and commenced its operations last month on June 27, 2008; and subsequently posted a record trade volume of 7,383 MWh, on July 14, 2008.

The inauguration ceremony was attended by eminent members of the power sector such as Mr. Anil Razdan, Secretary, Ministry of Power; Dr Pramod Deo, Chairman, Central Electricity Regulatory Commission, (CERC); Mr. R.V. Shahi, Chairman, Advisory Board, IEX; Mr. T. N. Thakur, CMD, PTC India Ltd and Mr. Jayant Deo, MD & CEO, IEX.

In his inaugural address, Shri Sushil Kumar Shinde said, “The establishment of the first-of-its-kind Power Exchange by the Indian Energy Exchange ( IEX ) is necessary for meeting the demand and supply gap of electricity that exists in the country. IEX places the Indian power market at par with the most sophisticated exchanges in the world. The technology comes from an alliance between Financial Technologies of India and OMX Technology of Sweden, the technology-provider to the world's leading power exchange, NORDPOOL, which I believe, is the most efficient power exchange in the world and also the most liquid in Europe .”

IEX has progressed rapidly from being just a concept in March 2007 (when CERC received the first application to set up a Power Exchange) to the start of power trading on the platform this June. The growing number of transactions at the exchange is further testimony to the fact that the industry has been in need of such an exchange to meet the rising mismatch between power demand and supply in various parts of the country.

Mr Anil Razdan, Secretary (Power), Government of India said, “I congratulate Financial Technologies ( India ) Ltd and PTC India Ltd for such an exemplary vision and mission. It shows a level of thought that is so necessary for any business to be responsive to the needs of the common people. I congratulate all equity holders in IEX, as well as all its Members, for their confidence in what is truly a pioneering development in the electricity market.”

Mr. Venkat Chary, Chairman, IEX , said, “It is very satisfying to see IEX goes live. The hard work of the entire industry has paid off with the commencement of power trading in the country. IEX going live has enabled India to join the select group of developed countries which have power trading markets.”

Mr. Pramod Deo, Chairperson, CERC, said, “I am happy to know that India 's first national-level power exchange; i.e., Indian Energy Exchange ( IEX ) has commenced its operations. The CERC has issued the guidelines for setting up power exchanges, with the objective of fulfilling the mandate given in the Electricity Act, 2003 for developing competitive power markets in the country. The operation of power exchanges has become feasible due to transparent and non discriminatory inter-State open access regime implemented by the Commission.”

Mr. Deo further added, “Promoting competition, I am sure, would result in long-term benefits to the consumers, as has been the experience in other sectors. It is also expected that the power exchanges in the country would also enhance confidence of the private investors as the exchanges would provide ready platform for sale of power with necessary payment security. I wish all the success to IEX.”

Mr. Jayant Deo, MD & CEO, IEX , mentioned, “The true spirit of the Electricity Act 2003, of creating “Competitive Power Market” has been initiated through IEX platform. The electricity price discovery on the IEX physical market will provide a transparent, credible and secure reference price for other physical market trades, of the entire power sector.”