Centre launches Indian Energy Exchange
It is the country's largest electricity trading platform
Union Minister of Petroleum and Natural Gas, Dharmendra Pradhan, launched India’s maiden gas exchange platform, Indian Energy Exchange two years after mooting the idea.
Indian Energy Exchange, the country's largest electricity trading platform, is the parent of the gas exchange, and had been planning to set up the nation’s first natural gas exchange to tap into the increasing demand for clean fuel.
In February 2020, the Indian Gas Exchange (IGX) had invited members to be part of its platform ahead of its formal launch. IGX has 12 members and 300 plus clients so far which includes buyers, sellers and users.
Also, with gas pipelines reaching more areas, it will bring under its ambit more and more domestic and industrial consumers.
While a trading hub will facilitate the availability of gas, the grid will help connect gas sources to consumption hubs which is the key to the government's plans to increase the share of natural gas in India's energy basket to 15 percent over the next decade from 6.2 percent now.
A gas trading hub will help people buy and sell gas directly. The exchange will help bring down the price of natural gas through competitive trade, boosting usage in the country that relies heavily on cheaper coal for its energy needs.