The clarification comes amid ongoing discussions within regulatory and ministerial circles regarding the proposal.
A report by CNBC-TV18 stated that the government is not currently considering market coupling to be a transformational or “big ticket” reform in its present form. This statement has brought temporary relief to market participants who were concerned about the potential implications of the policy for power exchanges like IEX.
The report also said that the Grid Controller of India’s report on market coupling—submitted earlier to the Central Electricity Regulatory Commission (CERC)—is still under review.
In addition, the government is said to be evaluating ways to deepen the power market by looking into the expansion of energy derivatives in the future.
This development comes after IEX shares had faced sharp selling pressure when initial reports suggested that the Power Ministry was actively engaging with stakeholders on the market coupling proposal.At that time, it was reported that the ministry was considering consultations to discuss the potential benefits of implementing such a system.Earlier this year, on February 21, Power Secretary Pankaj Agarwal had indicated that both the Ministry of Power and CERC were reviewing the recommendations of the Grid Controller regarding market coupling.
Also read: ICICI Prudential AMC files for Rs 10,000 cr IPO; entirely an offer for sale by Prudential Corp
Further back, in September 2024, another CNBC-TV18 report stated that market coupling of power exchanges was being considered by policymakers. While the official had confirmed that such a move was likely at some point in the future, no timeline was provided for its implementation.
Market coupling refers to the integration of multiple power exchanges under a common clearing mechanism to determine a unified market price.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
