Jindal Steel and Power's MD and CEO Ravi Uppal said that the firm currently has 2,500 megawatt of power and its plant load factors are at around 95 percent levels.
He recommends putting money into FMCG, IT, pharma and auto stocks. "Another 50bps rate cut is likely by year- end, with fall in interest rates consumption theme should be back," he told CNBC-TV18 in an interview.
Harshavardhan Dole of IIFL, in an interview to CNBC-TV18, says that truant SEBs have forced NTPC to operate at lower PLF levels and adds that states need to provide more cash subsidies
NK Jain, Vice Chairman of JSW Energy told CNBC-TV18, the poor financial health of state electricity boards (SEB) is the most critical issue facing the power sector. According to him, tariff hikes are imperative for improving the condition of distribution companies or discoms.
One of the initial steps announced by the Government in its latest burst of reforms dealt with debt restructuring of the State Electricity Boards (SEBs).
Govt's ambitious plan to restructure SEBs and make them debt free seems to have hit a road block. States interested in the scheme had to come on board by December 31 but the power ministry has now extended the deadline by three months owing to objections raised on some proposals by the states.
In an interview to CNBC-TV18, Rajen Shah, CIO of Angel Broking recommends Oriental Hotels and Apar Industries as multibagger stocks. Shah is bullish on these two stocks because the downside is very low and the upside is likely to be huge.
JG Kulkarni president of IEEMA says debt recast will improve financial viability of SEBs. "It will give a boost to electrical industry where the capacity utilisation today is, on an average, 67 percent," he adds.
Giving his views on the financial restructuring of State Electricity Boards, Vinayak Chatterjee, Chairman of Feedback Infrastructure said that the package is fairly foolproof and this intervention was necessary otherwise nobody was able to see the road forward.
The government has cleared Rs 2 lakh core debt restructuring proposal for state electricity boards. Raaj Kumar of GMR Infra says Tamil Nadu owes significant amount to the company, in the region of Rs 600-700 crore. "We expect to receive this money soon, as soon as next month only," he adds.
The market is cheering up government's move to bail out State Electricity Boards debt. Analysts feel that the package is a positive sentiment upmove for the capital goods sector.
analysts tracking the sector have warned that it may be too early to celebrate considering that other major issues facing the power sector are yet to be resolved. For instance, power producers are still grappling with coal shortage and land, environment clearance.
Pushing new reform s in the power sector, the Centre on Monday approved restructuring of Rs 1.9 lakh crore debt of State Electricity Boards in a move to turnaround the near-bankrupt power distribution companies.
With the central government set to come out with a financial package for loss-making state electricity boards, Amish Shah of Credit Suisse feels the move will help power generators improve their working capital cycle as they can now hope for timely payments from their customers (state electricity boards).
In order to push for power reforms, power minister Veerappa Moily held a meeting with state electricity regulatory authorities on Wednesday.
Way2Wealth has come out with its report on sugar industry. The research firm is having a long term positive view on the sector and prefers Balrampur Chini Mills, Dhampur Sugar Mills and Triveni Engineering & Industries from the sector.