February 06, 2013 / 12:56 IST
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 reports, including from The Economic Times.
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 LtdDomestic coal price hike to affect power stations: Expert
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. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
