Mumbai, Jan. 9 -- National Stock Exchange of India is in talks with Indian Gas Exchange to develop and launch an Indian Natural Gas Futures contract. The move aims to strengthen India's natural gas market and align with the evolving gas pricing framework.

The proposed contract will offer a transparent risk management tool by combining NSE's derivatives expertise with IGX's leadership in spot gas trading and price discovery. It is expected to help producers, city gas distributors, power and fertiliser companies and other consumers hedge price volatility and improve planning.

Sriram Krishnan, chief business development officer at NSE, said natural gas is emerging as a key transition fuel for India and a domestic futures contract would enh...