Power producers gain on coal price pooling reports
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)
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