The proposed NCE is expected to be set up by ICICI, Mahindra & Mahindra (M&M), National Stock Exchange (NSE) and the Punjab State Warehousing Corporation. The proposal, suggested last year and cleared earlier this year by the commodity futures regulator, Forward Markets Commission (FMC) has been approved by the government as well.

It is expected to be built on the lines of successful National Stock Exchange (NSE) which helped spread the equity cult across the country.

Accordingly, the four-entity consortium is expected to present a detailed plan of action through an independent legal entity for the purpose, to the FMC.

However, the NCE plan does not seem to be making any headway even after more than four months of formal clearance from the government.

"For the NCE plan to take off, it is necessary that the participants understand the basic concept of commodity futures trading" said a top source requesting annonymity. "Also, there are differences of opinion on how to fund the entity, who will contribute what and take up how much equity and many other issues remain to be settled".

Little wonder therefore, ICICI's middle and lower rung executives are currently on a commodity futures learning and studying mode, even as the entity itself seems uncertain, on its planned foray in setting up the proposed NCE. ICICI had announced publicly, its intention of moving into commodities segment as early as February this year.

Also, the fate of M&M's involvement in the proposed NCE is said to be uncertain after British Telecom's recent indication of its interest to move out of the MBT (M&M and British Telecom's joint venture).

Informed sources say it was MBT which would have joined the proposed NCE plan.

Repeated calls since the past few months at both ICICI and M&M have remained futile to evoke any response from either of these entities. "The work is going on" is all what a mid-level ICICI executive would prefer tosay.

Commodity market sources say, rather mockingly, that ICICI's "boys" are keen to learn the basic concept of commodity futures trading. "They are even requesting office bearers and top members of the Bombay Oilseeds and Oils Exchange (BOOE) to train them in commodity futures".

In order to offer a strong platform to players of the commodity markets which can be more reliable than the existing commodity exchanges, the government (backed by the FMC's proposal) is keen to see NCE emerging on the national commodity futures scene.

For this purpose the NCE is expected to take up trading in commodity futures of number of commodities collectively, thereby giving the existing commexes a serious competition and a better official option to those interested in commodity hedging.

Most interesting and important observation was made by the World Bank's senior advisor Lamon Rutten. In his presentation, at a concluding seminar on October 31, Lamon Rutten, senior advisor, International Task Force on Commodity Risk Management in Developing Countries has clearly suggested that: "Throwing a lot of money into a project doesn't make a market.

Just building a platform will not attract the users, especially not for commodity for which existing exchanges already have a reasonable volume.

"The likelihood of success of an `outside initiative' to create a national commodity exchange is limited", said Rutten. "Commodity exchanges have too much of a head start to really have to fear such an initiative".