Expectations of the passing of the Electricity Bill and sops for the power sector in the forthcoming Union Budget for 2003-04 seem to have led to good trading in the stocks of power generation and transmission companies in the past few sessions.
Volumes in Tata Power has edged up from average 80,000 shares per session to over four lakh shares in the last five sessions. The price has jumped from Rs 110 to Rs 117.60 on Thursday. On the other hand, Surat Electricity has surged 5.93 per cent to Rs 69, ABB has advanced 13.20 per cent to Rs 299.65. Bhel touched a new three-year high and has appreciated by 35 per cent to Rs 195.25 in the last three months.
However, BSES has remained flat at Rs 221 levels, while the Kolkata-based utility CESC has declined to Rs 17.95 in the last few sessions.
In December 2002, a Parliamentary panel had cleared the Electricity Bill which proposes to rationalise tariff.
The passage of the Bill, in fact, will give power companies access to transmission and distribution, and they may even be made eligible to supply power directly to consumers.
The Electricity Bill seeks to abolish the current restrictions on power generators and aims at reforming the sector. It will also improve the health of state electricity boards (SEBs), analysts said.
Apart from the emphasis on private participation in the electricity sector, the Bill stresses on competition and efficiency in the sector, introduction of anti-theft laws at the state level, open access to the transmission and distribution networks and time-bound restructuring of the SEBs.
