NHPC, SJVN rally on reports of bailout package to hydropower sector

SJVN soared 9% to Rs 35.15, while NHPC surged 8% to Rs 34.05 on BSE in early morning trade

Shares of state-owned electric utilities companies such as NHPC and SJVN rallied more than 5% each in early morning trade on reports that the government has decided to provide a Rs 16,000-crore bailout package to the hydropower sector, drowning under a spate of stalled and stressed projects.

“This package includes a 4% interest subvention to projects with total capacity of 11,639 Mw and the creation of a Hydro Power Development Fund. The fund would be financed with either coal cess, or from the National Clean Energy Fund or the pool for the Development of North Eastern Region (DONER),” the Business Standard report suggests. CLICK HERE TO READ FULL REPORT.

NHPC surged as much as 8% to Rs 34.05, also its 52-week high on the BSE. The stock settled at Rs 33, up 5%. 

SJVN also ended at Rs 33, up nearly 3% after soaring 9% to Rs 35.15 in intraday trade.