CCEA allows power cos to pass imported coal cost, stocks up
The cabinet committee on economic affairs (CCEA) has decided to allow power companies to pass on the costs of imported coal to customers.
June 21, 2013 / 13:32 IST
Power stocks rallied 1-3 percent in afternoon trade Friday, after the cabinet committee on economic affairs (CCEA) decided to allow power companies to pass on the costs of imported coal to customers.
This move is likely to boost imports and investment in power generation, but increasing energy prices for consumers.A proposal to raise gas prices has been deferred, information and broadcasting minister Manish Tiwari told reporters after a cabinet meeting.Also Read -
CCEA okays new coal price model, Nevyeli Lignite divestmentIndia is the world's third-largest producer of coal and more than half the country's power comes from burning the fuel, but domestic output falls short of demand, triggering frequent and lengthy power cuts in Asia's third-largest economy, reports Reuters.Shares of Adani Power and Tata Power rose nearly 3 percent while CESC, NTPC, Reliance Infrastructure and Reliance Power gained more than one 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!
