February 6, 2013 / 6:35 AM / 4 years ago

MARKET EYE-Indian power producers gain on coal price pooling reports

2 Min Read

* Shares of private sector Indian 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 the reports,
including from The Economic Times. (link.reuters.com/hum75t)
 
* Nomura says price pooling for coal would only impact projects
eligible to secure supplies from Coal India Ltd under
their respective fuel supply agreements, and hence would only
benefit independent power producers such as Lanco Infratech Ltd
 and Adani Power Ltd.
* The investment bank adds pooling would be neutral to positive
for NTPC Ltd 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.

 (abhishek.vishnoi@thomsonreuters.com /;
abhishek.vishnoi.thomsonreuters.com@reuters.net)

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