Power stocks rally, BHEL up 7% on EGoM's UMPP norms

Moneycontrol Bureau

Power stocks got a fillip Monday as the Empowered Group of Ministers (EGoM) on Ultra Mega Power Plants (UMPP) cleared new bidding norms. It also said that extra gas will be given to power companies till FY16. CNBC-TV18 sources say that additional gas from new discoveries will also go to the power companies.

Also, the Cabinet Committee on Investments (CCI) is likely to clear 28 stalled mega power projects today. Out of the total, Reliance Power's  (up 1.4 percent) Sasan project worth Rs 20,800 crore, JSPL's Angul (up 1.4 percent) power project worth Rs 9,121 crore, JP Venture's (down 1 percent) power project worth Rs 8,100 crore, Hindalco (up 1 percent) and NALCO's (up 5 percent) projects are also under consideration for approval in the CCI agenda.

Meanwhile, shares of power equipments manufacturers like BHEL (up 7 percent) and L&T (up 1 percent) surged as EGoM also approved mandatory sourcing of power equipment from domestic manufacturers. It said that power equipment will have to be manufactured in India and the decision applies to UMPPs and all case-II projects.