Tata, Adani Power share price: Shares of power majors Tata Power and Adani Power gained on Tuesday, after the Supreme Court allowed state-run discoms and power producers move Central Electricity Regulatory Commission to seek amendment in purchasing power agreement (PPA). Adani Power share price rallied nearly 4% on Tuesday morning to hit an intraday high of Rs 43.95. Yesterday, the shares had gained more than 20.85% to close the day at Rs 42.30. Tata Power shares gained more than 3% to hit an intraday high of Rs 80.05 in the morning trade. Yesterday, the shares had closed the day more than 12% higher at Rs 77.60.
Taking stock of the development, Tata Power MD & CEO Praveer Sinha said that the high-powered panel’s recommendations are fair & just for all stakeholders. In an interview to CNBC TV18, Sinha said that under-recovery at Mundra stands at 90 paise/unit. “High-powered panel’s recommendations allow us to pass on coal cost to consumers, partly. Possible impact to consumer might be minimal to the level of 2-3 paisa/unit,” he told the channel.
Yesterday, in accordance with the recommendations of a high powered committee, the apex court had given its green signal to discoms and power producers to seek amendment in purchasing power agreement. The court has also provided two weeks time to the stakeholders.
The three-member higher-power panel which was formed by the Gujarat government, had recommended the option of passing the burden of high fuel price to consumers, extension of the PPA and haircut to lenders. According to a PTI report, bankers are facing a heavy stress of Rs 18,000 crore due to power plants set up by Adani, Tata Power and Essar Power in Gujarat.
The 4,000 MW Coastal Gujarat Power Limited of Tata Power, 4,620 MW at Mundra, Adani Power Mundra Limited and 1,200 MW Essar Power Gujarat Power Limited at Salaya were identified as stressed power projects. The panel was formed under former Supreme Court Justice R K Agrawal, former RBI Deputy Governor S S Mundra and former Chairman of Central Electricity Regulatory Commission Pramod Deo, to explore the legal and commercial options of the stressed power projects.
Earlier, the Supreme Court directed that the companies cannot raise tariff from what was negotiated in the PPA while setting up these projects in Gujarat.
To know more about us or our services, kindly visit www.buildcaps.com
Buildcaps Management Services
Best Investment adviser in India & Genuine Stock advisory company
