Power firms’ shares surge as govt vows more LNG imports
26 Mar 2015
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Shares of companies owning gas-operated power plants rose after the government said it will boost imports of liquefied natural gas (LNG) to improve electricity generation and revive plants suffering from a perpetual shortage of fuel.
Torrent Power Ltd jumped 9.46 per cent, GVK Power & Infrastructure Ltd rose 4.34 per cent, and Lanco Infratech Ltd rose 5.5 per cent in intraday trade today.
"Government will provide subsidy directly to the distribution companies for purchasing gas-based power. This will help the gas-based power plants to operate at a capacity utilization of about 30 percent and generate cash on their idle assets," Morningstar analyst Piyush Jain said in a note, according to a Reuters report.
Gas suppliers and importers also gained. Gujarat State Petronet jumped 8.6 per cent, while Petronet LNG and Gail (India) rose 1.59 per cent each in intraday trade.
Torrent Power Ltd jumped 9.46 per cent, GVK Power & Infrastructure Ltd rose 4.34 per cent, and Lanco Infratech Ltd rose 5.5 per cent in intraday trade today.
"Government will provide subsidy directly to the distribution companies for purchasing gas-based power. This will help the gas-based power plants to operate at a capacity utilization of about 30 percent and generate cash on their idle assets," Morningstar analyst Piyush Jain said in a note, according to a Reuters report.
Gas suppliers and importers also gained. Gujarat State Petronet jumped 8.6 per cent, while Petronet LNG and Gail (India) rose 1.59 per cent each in intraday trade.
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