Tata Power surges on plans of increasing coal mining

Tata Power has surged 6% to Rs 1,345, on reports that the company has proposed to increase its coal mining capacity in Indonesia to 75 mt from the current 60 mt.

The stock opened at Rs 1,275, is currently trading at day's high level on the BSE. Around 84,000 equity shares have changed hands so far on the counter. The company also plans to increase power generation from an annual 3,000MW currently to 4,242MW in 2011 and further to 5,842MW in 2012.

The finance minister in its Union Budget 2010-11, has proposed plan allocation for power sector, excluding Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), of Rs 5,130 crore for 2010-11 - which is more than double from Rs 2,230 crore for 2009-10.

Other power sector stocks such as GMR Infrastructure, Torrent Power, NHPC and Suzlon Energy have also rallied on the BSE, with a gain of 2-4% each.