The Central Electricity Regulatory Commission (CERC) proposes to grant registration to Pranurja Solutions to establish and operate a power exchange. The Commission said that it would invite suggestions and comments on its proposal.
It will be the third power exchange in India after India Energy Exchange (IEX) and Power Exchange India (PXIL).
Pranurja had filed a petition before the Commission seeking to establish and operate as a power exchange. In the interim period, it had requested the Commission to grant provisional registration to align its structure, management, and activities per CERC regulations 2010.
Pranurja Solutions was incorporated by a consortium of PTC India, BSE Investments, and ICICI Bank with a fully paid share capital of ₹100,000 (~$1,372) and shareholding pattern of 49%, 41.10%, and 9.90%, respectively.
In 2018, BSE Investments, ICICI Bank, and PTC India filed a petition with CERC to grant a license to set up a new power exchange. Later, on April 26, 2019, the company executed the shareholder agreement and share subscription agreement with its consortium members. The members infused an equity share capital of ₹255 million (~$3.5 million).
In its earlier order, the Commission had observed that the shareholding pattern was 49.02%, 41.08%, and 9.90% for PTC India, BSE Investments, and ICICI Bank, respectively. The matter was further heard on May 28, 2019, and it was observed that the company was yet to comply with the requirement of the shareholding pattern.
Later, Pranurja Solutions submitted a list of proposed investors for the grant of registration, which included PTC India (25%), BSE Investments (25%), ICICI Bank (9.90%), Greenko Energies (5%), Subrashi Vinimay (5%), Jindal Power (2%), Chamaria (3.1%), Tollman International (5%), Lord Dholakia (5%), and Meenakshi Power (5%). The company also said that its paid-up share capital was expected to increase to ₹500 million ($6.86 million).
In its order dated July 31, 2020, the Commission had observed that the company met the requirements of power market regulations for granting registration. The Commission had directed the company to comply with Regulation 19 of the power market regulations.
Pranurja Solutions, in its board meeting held on September 21, 2020, approved the allotment of further equity shares to new investors and the original shareholders.
The company noted that its current shareholding pattern had confined each investor’s holdings to 25% or less in line with Regulation 19 of the power market regulations.
The Commission observed that the company had fulfilled the net worth requirement of ₹250 million (~$3.4 million) and that its net worth was ₹500 million (~$6.86 million). The promoter companies, i.e., PTC India, BSE Investments, and ICICI Bank, were 25%, 25%, and 9.99% of shares. Also, there were 11 other shareholders, each of whom had a shareholding of 5% or less.
The existing two power exchanges have introduced trading in renewable energy, given the increased focus on green energy. In December 2020, Mercom reported that IEX had launched green daily and green weekly contracts on its green market trading platform with contracts for both solar and non-solar power.
Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.
Rakesh is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.