By IANS,
New Delhi : The Indian government Friday allowed foreign investment up to 49 percent in power trading exchanges, opening up the crucial power sector.
The Cabinet Committee on Economic Affairs (CCEA) approved the policy reform at a meeting chaired by the prime minister.
The decision is expected to strengthen the power trading exchanges and improve the availability and distribution of power at a time when the country is facing a huge shortfall in electricity.
Power exchanges are in a nascent stage of development in India. The existing exchanges are the Indian Energy Exchange (IEX) and Power Exchange India Ltd (PXIL) which are promoted jointly by the National Stock Exchange and the National Commodity and Derivative Exchange.