Ten power generation stocks rose by 0.75% to 5.17% at 14:21 IST on BSE on reports Prime Minister Narendra Modi is set to meet the bosses of loss-making state-government run electricity utilities to debate a rescue package for the debt-laden sector..
Adani Power (up 5.17%), Reliance Power (up 4.84%), Reliance Infrastructure (up 3.93%), CESC (up 3.57%), NTPC (up 3.18%), Jaiprakash Power Ventures (up 2.75%), JSW Energy (up 2.08%), Tata Power (up 1.93%), GMR Infrastructure (up 1.65%) and Torrent Power (up 0.75%), edged higher.
The S&P BSE Sensex was up 160.57 points, or 0.63% at 25,770.78.
According to media reports, Prime Minister Narendra Modi is set to meet bosses of loss-making state-government run electricity utilities today, 14 September 2015, to debate a rescue package for the power transmission and distribution sector. According to reports, the government has identified weak financials and high debt of state-government run electricity utilities as the key obstacles for the growth of the power sector in the country. According to reports, Indian banks have outstanding loans aggregating Rs 53000 crore to state-government run electricity utilities and there is a risk of majority of these loans turning into bad loans.
The government has not made public the details of the renewed package, but options under discussion include allowing states to take over debts of distribution companies to ease their financial crunch, in return for a renewed clampdown on electricity losses, reports suggested.
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