Shares of power producers Tata Power and Adani Power today settled for the day with handsome gains on the bourses after the electricity regulator CERC has allowed them higher tariff and total compensation for their Mundra power projects.
On Saturday, CERC allowed Tata Power and Adani Power, higher tariff and total compensation worth over Rs 1,100 crore for their Mundra power projects fired by imported coal.
At the end of today's trading shares of Tata Power was quoted at Rs 82.65, up 5.02 per cent over its previous closing price on BSE. Accordingly, the market capitalisation of the company increased by Rs 1,490 crore to Rs 19,613 crore.
The Adani Power stock meanwhile settled for the day unchanged from its previous closing price. During the day however, the stock had jumped as much as 5.21 per cent to an intra-day high of Rs 38.35 on the BSE Sensex.
Market analysts attributed the surge on power stocks as a knee-jerk reaction to the Saturday's development.
The much awaited rulings would help mitigate the losses suffered by the two Mundra projects, located in Gujarat, due to price rise in Indonesian coal that is used to fire these plants.
Tata Power is running the 4,000-MW Mundra Ultra Mega Power Project (UMPP), while Adani Power is implementing the 4,620 MW Mundra plant.
In a separate order, running into 133 pages, CERC granted nearly Rs 830 crore compensation for Adani Power's 4,620-MW Mundra plant.