Ten power generation stocks lost 0.68% to 2.73% at 10:29 IST on BSE, in line with subdued market sentiment.
JSW Energy (down 2.27% at Rs 77.65), Jaiprakash Power Ventures (down 1.63% at Rs 4.83), Reliance Power (down 1.56% at Rs 50.50), NHPC (down 1.43% at Rs 24.20), Tata Power Company (down 1.36% at Rs 72.65), Adani Power (down 1.18% at Rs 29.20), GMR Infrastructure (down 0.96% at Rs 12.34), Reliance Infrastructure (down 0.88% at Rs 536.25) and CESC (down 0.68% at Rs 572.55) edged lower. Torrent Power (up 0.23% at Rs 174.15) edged higher.
Meanwhile, the S&P BSE Sensex was up 14.64 points or 0.05% at 26,780.29.
The Union Cabinet yesterday, 22 June 2016, approved the extension of the timeline for taking over 50% of the outstanding debt of state-government run power distribution companies or DISCOMs by the respective state government under the Ujwal DISCOM Assurance Yojana called UDAY by one year from the earlier stipulated date of 31 March 2016. Some states were unable to join the scheme due to time constraints in completing the processes or inability to take major policy decisions such as joining UDAY due to on-going election processes. The extension of the timeline will enable states to participate in this scheme by allowing adequate time to complete the multi-stakeholder process required for joining and/or issuing bonds. In addition, Jammu & Kashmir will be able to float further bonds.
UDAY is a scheme for the operational and financial turnaround of DISCOMs, which are the weakest link in the power value chain. It provides DISCOMs with a clear roadmap and opportunity to become profitable in the next 3 years.
NTPC was down 2.73% at Rs 148.10. The company announced after market hours yesterday, 22 June 2016, that in accordance with the approval accorded by Cabinet Committee on Economic Affairs on 13 May 2015, Government of India (GOI) has offered 2.06 crore shares to the eligible employees of NTPC at discounted price of Rs 115.90 per share i.e. 5% discount to the cut off price of Rs 122 discovered through the offer for sale of shares of NTPC carried out by GOI on 23 February 2016 and 24 February 2016.
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