NCDEX to launch coal futures in Sept; energy exchange in Oct

NEW DELHI: National Commodity and Derivative Exchange on Wednesday said it will launch futures trading in thermal coal next month and plans to begin second power exchange in joint venture with the National Stock Exchange.

"We will launch thermal coal futures on September 10. It will help users to hedge their risk to price exposure," NCDEX Managing Director and Chief Executive Officer R Ramaseshan told reporters here.

The exchange is looking a delivery centre for coal at Nagpur. Ramaseshan also announced that it would unveil the country's second power exchange in joint venture with the National Stock Exchange on October 1.

He said the joint venture company where the NCDEX and the NSE have 50:50 share, has already been registered and any dilution of stakes in the new firm would depend on the interest shown by the power generating and trading companies.

Sources said the NSE-NCDEX promoted energy exchange is likely to be named as National Power Exchange, which will allow spot trading of electricity.

Leading commodity exchange the MCX has already started India Energy Exchange (IEX), where many power trading companies both in public and private sectors have stakes.

Ramaseshan also said the NCDEX promoted spot exchange is likely to commence operations of farm commodities in October after the arrival of kharif harvest.

NCDEX Spot Exchange Ltd has already received permission from Maharashtra government, while it is still awaiting nod from Karnataka, he said. NCDEX Spot has entered into an agreement with the Indian Exchange of Metals Ltd (IEM) for logistics support and settlement of physical deliveries.