Reliance Infrastructure and Tata Power fell by 0.59% and 2.50%, respectively at 14:30 IST, after media reports suggested that the state government in Maharashtra is planning to cut power tariffs.
Shares of Tata Power were off 2.50% at Rs 81.95. The stock has declined 10.29% in four trading sessions from a recent high of Rs 91.35 on 31 December 2013.
Shares of Reliance Infrastructure (RInfra) were off 0.59% at Rs 410.40. The stock was volatile. The scrip hit high of Rs 415.20 and low of Rs 406.75 so far during the day. The stock has declined 5.38% in three trading sessions from a recent high of Rs 433.75 on 1 January 2014.
According to media reports, Narayan Rane, the State Industries Minister, said a decision would be announced in eight days and the group of ministers set up by the government under Rane recommended that electricity tariff be cut by around 15%. The cut would be only for farmers, domestic consumers and small businesses consuming less than a set amount of electricity, the report said.
A cut in power tariff in Maharashtra would come after the ruling Aam Aadmi Party's push in Delhi to cut power tariff in the state.
Delhi Chief Minister Arvind Kejriwal last week announced that the power tariffs in Delhi will be slashed by 50% for up to 400 units. The Delhi government will provide the subsidy and the money will be directly paid to the distribution companies. The cut in electricity tariffs, part of the AAP manifesto for the 4 December state assembly election, will entail a cost of Rs 61 crore over next three months.
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