Power stocks on a roll, Adani Power up 24% in 2-days

Shares of power generation companies have gained for the second straight sessionw after the Prime Minister Manmohan Singh on Wednesday directed Coal India Ltd (CIL) to import coal to ensure supplies for 20 years to 50,000-mw power plants that are proposed to be commissioned by March 2015.

Neyveli Lignite, Adani Power, Lanco Infrastructure, Tata Power, PTC India, Bharat Heavy Electricals Limited, Suzlon Energy, Reliance Infrastructure and Thermax are trading higher by more than 3% each in an otherwise weak market.

The Bombay Stock Exchange (BSE) power index the largest gainer among sector indices is up 2.33%, compared to 0.29% drop in the benchmark index Sensex. However, CIL is down by 4% at Rs 325 on back of the said news.

According to the decision by the Prime Minister’s Office (PMO), CIL will have to sign supply agreements with all power plants that will get commissioned over the next three years ending March 2015. The company has been asked to sign agreements for supply within a month for plants commissioned up to December 31, the newspaper report suggests.