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Shares of power generation firms rallied today following the Presidential directive to Coal India Ltd (CIL) to commit fuel to power companies.
Shares of power firms surged 3.41 per cent to 0.57 per cent, despite a weak market.
The directive was announced after the market hours yesterday asking CIL to sign fuel supply agreements with power producers and assuring them of at least 80 per cent of the total committed coal delivery.
The BSE power index outperformed the Sensex which was down 0.53 per cent. The index was up nearly one per cent in morning trade, with gains of 0.29 per cent at 2,155.38 points at 11.14 am.
Adani Power was up 3.41 per cent, followed by JSW Energy (1.92 per cent), Tata Power (1.78 per cent), Reliance Power (0.91 per cent), Torrent Power (0.61 per cent), GVK Power & Infrastructure (0.57 per cent).
The directive has been given to the PSU as it did not meet the deadline of March 31, set by the Prime Minister’s Office, for CIL to enter into agreements with power producers which are facing fuel crunch.
While power producers welcomed the decision, analysts said CIL may stand to lose heavily in case it falters on its commitment to supply fuel to the energy firms.
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