Shares of power and gas utility stocks today rose as much as five per cent on bourses after Cabinet approved financial support to revive stranded power projects.
In a bid to revive Rs 60,000 crore of stranded power projects, the Cabinet yesterday approved financial support to private companies to help them use costly imported gas (LNG) for generating electricity.
Among power generation companies, Torrent Power settled for the day with gains of 3.23 per cent. Similar movement was seen in the GVK Power & Infrastructure counter also which ended the day up 2.43 per cent.
Among gas utilities and distribution companies, Gail (India) gained up 0.45 per cent, Petronet LNG was up by 1.28 per cent, Gujarat State Petronet up 4.70 per cent and Indraprastha Gas up 0.96 per cent.
Thirty-one power stations with a combined capacity of 14,305 megawatt, which are languishing because of want of gas, can bid for support from the Power System Development Fund for generating 30 per cent of their installed capacity using imported liquefied natural gas (LNG).
