Power stocks rally on SEB bailout package plan

The Cabinet has cleared Rs 2 lakh crore proposal to restructure the debt of the state power boards.

The states shall convert all SEB loans into equity. States will have to defer recovery till lenders are paid. States will have to settle all power outstanding by November, 2012. Discoms will have to eliminate gaps in revenue within the moratorium. Errant states or discoms will be barred from fresh short-term loans.

Just seven of the country's 28 states - Rajasthan, Uttar Pradesh, Haryana, Tamil Nadu, Punjab, Madhya Pradesh and Andhra Pradesh - have between them accumulated losses of Rs 1.9 lakh crore from power distribution. The government's stimulus package is a step to save these companies going into deeper losses.
 
At 09:21 hrs Power Finance Corporation was quoting at Rs 203.00, up Rs 3.25, or 1.63%. It has touched an intraday high of Rs 206.80 and an intraday low of Rs 202.40. It was trading with volumes of 91,105 shares.

At 09:21 hrs Rural Electrification Corporation was quoting at Rs 234.15, up Rs 3.85, or 1.67%. It has touched an intraday high of Rs 238 and an intraday low of Rs 234.10. It was trading with volumes of 82,766 shares.
 
At 09:21 hrs PTC India was quoting at Rs 70.15, up Rs 2.35, or 3.47%. It has touched an intraday high of Rs 70.40 and an intraday low of Rs 68.90. It was trading with volumes of 76,260 shares.