Cummins India fell 5.23% to Rs 1006.05 after the government amended rules mandating power distribution companies to supply 24x7 electricity in metros and large cities to dissuade diesel generators in five years.
The Union Ministry of Power issued a gazette notification to amend the Electricity (Rights of Consumers) Rules, 2020."In view of the increasing pollution level particularly in the metros and the cities with a population 1,00,000 and above, the distribution licensee shall ensure 24x7 uninterrupted power supply to all the consumers, so that there is no requirement of running the diesel generator sets," the notification said.
It added that the consumers, who are using the diesel generator sets as essential back up power, shall endeavor to shift to cleaner technology such as renewable energy with battery storage and the like in five years from the date of commencement of these rules or as per the timelines given by the State Commission.
The distribution companies are asked to speed up the process of giving temporary connections to the consumers for construction activities or any temporary usage within 48 hours. In case augmentation of the distribution system is required it can be seven days. "This shall avoid any use of diesel generator sets for temporary activities in the area of the distribution licensee," the notification said.
The direction is negative for sales of diesel Genset in India.
Cummins India, part of the Cummins Group in India, is the country's leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets.
On a consolidated basis, net profit of Cummins India rose 3.83% to Rs 249.50 crore on 21.54% rise in net sales to Rs 1709.62 crore in Q3 December 2021 over Q3 December 2020.
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