- (1.) THE applicant has made the present application to seek permission for setting up and operation of power exchange through a separate company being promoted jointly by the applicant and other stakeholders, namely NHPC and NCDEX.
(2.) Under the guidelines of the Commission for setting up of power exchange, any company incorporated under the Companies Act, or a consortium of companies who have entered into a formal agreement on issues critical to the setting up of the power exchange may make an application for this purpose, provided that the persons managing the affairs of such company or consortium have adequate knowledge and understanding of the electricity laws. While making the application, the applicant is required to submit copies of its Memorandum and Articles of Association. In case of the consortium, a formal agreement, among other things is also to form part of the application. These guidelines further provide that the Commission may grant permission to an applicant. However, permission is granted in favour of incorporated company with limited liability, registered exclusively for the purpose of setting up of power exchange; this condition is applicable when the application is made by the consortium. The applicant in its application has stated that it is in the process of promoting a separate company jointly with other stakeholders for setting up and operating the power exchange. For this purpose NHPC and NCDEX who were approached are stated to have given their consent. It is further stated that finalization of the joint venture agreement is in progress. The applicant has also submitted the draft rules and bye-laws of the proposed power exchange.
(3.) THE applicant has published public notices in the newspapers keeping in view the Commission's guidelines contained in the order dated 6.2.2007 in suo motu Petition No.155/2006. In these notices, it has been stated that power exchange is proposed to be set up by a separate company being promoted by the applicant, jointly with NHPC and NCDEX who have "in principle" agreed to join as promoters. It is further stated that some other stakeholders are also expected to join.;