The Central Electricity Regulatory Commission (CERC) order offering ‘compensation package’ to Adani Power has given new hope to the power sector.
The positive impact could be seen at the bourses on Wednesday morning. Adani Power was trading 11.64 per cent higher at Rs 48.90 a share at around 11.05 am on the Bombay Stock Exchange.
Other power companies awaiting similar CERC judgements are Tata Power and Reliance Power.
Tata Power was trading 4.77 per cent higher at Rs 99.90 a share, while Reliance Power is trading 1.98 per cent higher at Rs 66.95 a share at around 11.05 am on the BSE.
The Tata Group firm has also filed a petition for revising tariffs from its 4,000 MW ultra mega power project (UMPP) at Mundra, Gujarat. The UMPP has been awarded to Tata Power on a levelised tariff of Rs 2.26 a unit for 25 years.
According to industry watchers, the revision in tariff also paves the way for tariff revision for Reliance Power’s Krishnapatnam and Sasan projects.
CERC has effectively settled the issue in favour of the developers and paved the way for viable commercial operations of these power plants while at the same time protecting the interests of consumers, said an official from private power company.