The country's largest power exchange, Indian Energy Exchange (IEX), is in focus as companies like Adani Total Gas, Gail, ONGC have picked up stake in its subsidiary Indian Gas Exchange (IGX).

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Rajesh K Mediratta, Director-Strategy and Regulatory Affairs at IEX, spoke to CNBC-TV8 To discuss about their business plans and CERC norms on market coupling.

“We started our subsidiary Indian Gas Exchange in June last year and we are seeing a lot of traction in terms of policy reforms. Good thing is that we are aligning, what we are doing with the government vision of increasing gas in the primary energy mix from 6 percent to 15 percent and we also see that there are lot of policy actions happening in terms of making the gas market more vibrant and liquid so that the government is able to meets its vision.”

“We were looking for our strategic investment players in the market because that is what gives value to us and of course we will add value to them. We are in discussion with NSE and ONGC. In case of ONGC already the board gave the approval so we are in discussion with them to close the deal.”

“We also are in discussion with few other strategic investors for an equity stake, which is within the regulation,” he said.

On coupling norms, Mediratta said, “Market coupling provision creates a separate platform where you aggregate all the bids and then discovers the price so what function currently is done by IEX it will be done at some other level. All the exchanges bids will be coupled and then you discover a price.”

“We are not a monopoly but despite all of them being there we have maintained our leadership position and we hope that similar leadership position we will be able to hold even when the market coupling happens.”

Watch the accompanying video for more.

(Edited by : Bivekananda Biswas)

First Published:Feb 22, 2021 3:58 PM IST