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Power Trading
The development of the power sector is often cited by the Government of India as one of its top priorities, as increased power supply is necessary for ensuring sustained GDP growth.

With the ratification of the Electricity Act of 2003, the Government took a bold step towards restructuring the power sector in the country. This Act officially recognized Power Trading as a licensed activity, defining it as the, "purchase of electricity for resale thereof," to be carried out as per the rules and regulations stipulated by the Central Electricity Regulatory Commission (CERC).

Simply put, Power Trading is the process by which electricity is bought from a power-surplus utility/region for resale to a power-deficit utility/region. This is a particularly effective strategy for optimum utilization of resources in a country with as much inherent diversity as India, where periods of seasonal oversupply in one state can coincide with periods of relative scarcity in another.

Currently, only 3% (approx.) of electricity generated in India is traded through short-term bilateral contracts. Due to the constraints of transmission capacity, the Indian inter-state electricity trade market is relatively underdeveloped. However, with the growth and synchronization of regional grids, and a steady increase in surplus capacity, there is significant potential for expansion of the Power Trading market across the country.

Considering this scope for development, and our close associations with various State Electricity Boards as their coal handlers, KCT has decided to diversify by including Power Trading in its business portfolio.

The Company was awarded an Inter-State Trading License by CERC in 2005, which was upgraded to the highest Category "F" in 2006 (this has since been re-classified as Category-I in 2008). KCT already has more than three years of experience performing various inter-state electricity trades across the country, including day-ahead and short-term bilateral transactions.



CIN: U51909WB1943PLC011283