NEW DELHI, Dec 14: Providing “one last opportunity”, CERC has given power exchange PXIL time till September-end next year to comply with the minimum net worth requirement of Rs 25 crore.
Power Exchange India Ltd (PXIL) — promoted by National Stock Exchange of India Ltd (NSEIL) and National Commodity & Derivatives Exchange Ltd (NCDEX) — has been struggling to meet the net worth requirement.
Following a plea from the bourse, the Central Electricity Regulatory Commission (CERC) has given more time to ensure compliance with the minimum net worth threshold.
“Taking into consideration the difficulties and the constraints experienced by PXIL in finding entities to infuse equity, we are inclined to grant one last opportunity to PXIL to comply with the minimum networth requirement of Rs 25 crore before September 30, 2015,” the watchdog said in a recent order.
In its order, dated December 3, CERC has also made it clear that no further extension of time would be allowed.
Under power market regulations, a power exchange should have at least Rs 25 crore net worth.
The bourse had sought time till March 31, 2015 to increase its net worth to Rs 10 crore and one more year to make it Rs 25 crore.
“PXIL has submitted that it has taken various steps to increase its net worth and as a result PFC and NCDEX have contributed towards equity of Rs 42 lakh and Rs 2 crore respectively,” the order said.
The exchange also submitted that it offered equity shares to various companies and state governments like Global Energy Power Ltd, Manikaran Power Ltd, Uttarakhand Power Corporation Ltd, Himachal Pradesh government and Tata Power Trading Company Ltd and JSW Energy and “some of the companies have declined the offer to contribute towards the equity share capital of PXIL”. (PTI)
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