Nod for 49% FDI in power exchanges

The government on Friday approved foreign investment of up to 49% in the power trading exchanges in the country.

The CCEA has decided to permit foreign investment up to 49% in power trading exchanges in compliance with Securities and Exchange Board (SEBI)  regulations; Central Electricity Regulatory Commission, power market regulations  2010, Commerce and Industry Minister Anand Sharma said after the Cabinet meeting here.

Of this total FDI should not exceed 26% while investment by Foreign Institutional Investors  (FII) should be restricted to 23% of the paid-up capital.

Currently there are two exchanges in the country namely Power Exchange India and Indian Energy Exchange.

FII investments would be permitted under the automatic route and FDI would be permitted under the government approval route he said.

As per existing policy, he said, FDI up to 100% under the automatic route  is permitted in the power sector except atomic energy.