Power producers gain on coal price pooling reports

Wed Feb 6, 2013 1:01pm IST

1 of 2. A worker installs an electric power cable on a pylon at a newly constructed power station in Jammu February 5, 2011.

Credit: Reuters/Mukesh Gupta/Files

Related Topics

Stocks

   

Reuters Market Eye - Shares of private sector power producers gain on media reports the cabinet has given preliminary approval to price coal by averaging prices of domestic and imported coal.

The measures are intended to bring down coal prices, but details still need to be fleshed out, according to reports, including from The Economic Times.

Nomura says price pooling for coal would only impact projects eligible to secure supplies from Coal India Ltd (COAL.NS) under their respective fuel supply agreements, and hence would only benefit independent power producers such as Lanco Infratech Ltd (LAIN.NS) and Adani Power Ltd (ADAN.NS). The investment bank adds pooling would be neutral to positive for NTPC Ltd (NTPC.NS) and revenue neutral for Coal India Ltd

Lanco Infratech shares gain 4.8 percent while Adani Power is up 1.9 percent. NTPC shares are down 1.6 percent, while Coal India shares are up 0.4 percent.

(Reporting by Abhishek Vishnoi)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Earnings Season

Earnings Season

Reliance Q4 sales rise, refining margin narrows.  Read 

Innovative Solution

Innovative Solution

Turning smog into jewels - a Dutch designer's solution to Beijing's pollution.  Video 

Insider Trading

Insider Trading

Rajaratnam's brother loses bid to dismiss insider trading charges.  Full Article 

Literary Giant Dies

Literary Giant Dies

Mourning and memories in Gabriel Garcia Marquez's languid hometown.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage