Investment plans fail to boost power stocks

The power index plunged 6.36% to 2,743, despite announcement of investment plans in the power sector.

The Budget gave a big boost to power reforms programme by increasing allocation to Rs 2,080 crore, or a rise of 160% from the previous fiscal year.

"I Propose to increase the allocation for the Accelerated Power Development and Reforms Programme to Rs 2,080 crore, a steep increase of 160% from the allocation in the Budget estimates of 2008-09," Finance Minister Pranab Mukherjee said in the Budget announcement.

The Budget provided allocation for Accelerated Power Development and Reforms Programme (APDRP). It is a government scheme for reducing the gap between power demand and supply.APDRP aims to bring the Aggregate Technical and Commercial (AT&C) losses to less than 15% from 35% at present.The project is worth 50,000 crore.

Reliance Infrastructure crashed 12.5% to Rs 1,131.

Power Grid and Torrent Power plunged nearly 8% each to Rs 103 and Rs 174, respectively.

Suzlon Energy, Tata Power and Reliance Power plunged over 7% each to Rs 98, Rs 1,101 and Rs 164, respectively.

BHEL slipped 3.5% to Rs 2,102.