Eight power generation stocks rose by 0.98% to 2.16% at 10:36 IST on BSE on reports that the power ministry has proposed to mix imported and locally produced natural gas and supply it to electricity producers at a subsidised price.
Adani Power (up 2.16%), Lanco Infratech (up 2.13%), Torrent Power (up 2.12%), NHPC (up 1.99%), Reliance Power (up 1.67%), Tata Power (up 1.61%), Reliance Infrastructure (up 1.22%) and NTPC (up 0.98%), edged higher.
The S&P BSE Sensex was down 84.01 points, or 0.42% at 19,913.44.
According to a media report, India's power ministry will soon send the proposal to a cabinet committee headed by Prime Minister Manmohan Singh. It has already been sent to ministries such as oil and finance, report suggested.
According to the proposal, state-run gas-pipeline operator GAIL India would be responsible for the mixing of imported and locally produced gas and supplying that to power stations at discounted prices.
The ministry has proposed that the government compensate GAIL through quarterly cash payments. It estimates the government's subsidy cost on this to be about Rs 24000 crore between now and 31 March 2016.
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