Tata Power, Reliance Power edge lower

Shares of Tata Power Company and Reliance Power fell 0.06% to 0.16% at 10:14 IST on BSE amid reports the Delhi government yesterday, 25 February 2015, announced a 50% subsidy on monthly power consumption of up to 400 units.

Tata Power Company fell 0.06% at Rs 82.95. The stock was volatile. The stock fell as much as 2.16% at the day's low of Rs 81.20 so far during the day. The stock rose as much as 0.36% at the day's high of Rs 83.30 so far during the day.

Reliance Power fell 0.16% at Rs 62. The stock was volatile. The stock fell as much as 0.96% at the day's low of Rs 61.50 so far during the day. The stock rose as much as 0.08% at the day's high of Rs 62.15 so far during the day.

Meanwhile, the S&P BSE Sensex was down 61.76 points or 0.21% at 28,946.23.

The Delhi government yesterday, 25 February 2015, announced a 50% subsidy on monthly power consumption of up to 400 units and 20,000 litres of free water per month to all households that would reportedly cost the exchequer around Rs 1670 crore annually. The free water scheme and power subsidy will come into effect from 1 March 2015.

However, the rider is that if consumption of power crosses 400 units, then full charges from zero base will have to be paid, as per reports. In case of water, if the monthly consumption exceeds 20,000 litres then charges for entire supply of water will have to be paid, reports suggested.

Earlier, the Delhi Chief Minister Arvind Kejriwal had met Comptroller and Auditor General (CAG) Shashi Kant Sharma and discussed the status of scrutiny of finances of the private power distribution companies by the auditor which was ordered by the Aam Aadmi Party (AAP) government in its first stint, according to reports. The subsidy scheme will be reviewed after the CAG submits its report on the finances of the discoms, reports suggested.

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