The National Commodity and Derivative Exchange (NCDEX) will launch futures trading in coal from September. Also, on the anvil is a power exchange that will be launched in collaboration with the National Stock Exchange (NSE) by October 2009.

?We plan to launch thermal coal futures on September 10. It will help users like power companies to hedge their risk to price exposure,? R Ramaseshan, managing director and chief executive officer, NCDEX said.

Ramaseshan also announced series of measures to spruce up the functioning of the exchange, including launching new futures contracts and reviewing existing ones. He said that NCDEX will also start a power exchange in collaboration with NSE by October 2009.

Speaking about the proposed power exchange, he said, ?The joint venture company promoted by NCDEX and NSE with 50:50 share has already been registered.? According to an NSE official, the NSE-NCDEX promoted energy exchange will be named National Power Exchange and will provide a platform for spot trading of electricity.

NCDEX?s rival Multi Commodity Exchange (MCX) has already launched its India Energy Exchange, where many power trading companies have stakes. Ramaseshan added that NCDEX spot exchange will commence trading in farm products in October, after the arrival of kharif crops. It has already received permission from the Maharashtra government, and is awaiting a nod from the Karnataka government.

However, it has not yet decided the crops to be traded on the electronic platform and is working on the matrix of crops and locations. The NCDEX chief hoped that the suspension of futures trading on four commodities?potato, soya oil, chana and rubber?will be lifted soon as it has been proved that the trade in futures does not lead to ?speculative trading?, as commodities? prices are determined by the fundamentals of demand and supply.

On trading in gold coin contracts, Ramaseshan said, ?We have shelved the plan as the contract size is small and we are facing delivery problems.?

MCX?s gold guinea contract has been successful with its July contracts recording a delivery of 3,118 coins of eight grams valued at Rs 3.18 crore.