Govt permits foreign money in power trading exchanges
15 Sep 2012 2:19 AM GMT
The government on Friday approved foreign investment of up to 49 per cent in the power trading exchanges in the country.
The Cabinet Committee on Economic Affairs [CCEA] has decided to permit foreign investment up to 49 per cent in Power Trading Exchanges in compliance with 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 foreign direct investment [FDI] should not exceed 26 per cent while investment by foreign institutional investors [FII] should be restricted to 23 per cent 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.
The Cabinet Committee on Economic Affairs [CCEA] has decided to permit foreign investment up to 49 per cent in Power Trading Exchanges in compliance with 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 foreign direct investment [FDI] should not exceed 26 per cent while investment by foreign institutional investors [FII] should be restricted to 23 per cent 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.
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