NTPC stock sinks over 11 percent post CERC order

The NTPC scrip Monday sank over 11 percent at the Bombay Stock Exchange (BSE) after the Central Electricity Regulatory Commission released final regulations for tariff determination applicable from 2014-15 to 2018-19 for projects based on an assured return on equity (RoE) business model.

The key changes made by CERC include shift in the incentive regime from plant availability factor (PAF) to plant load factor (PLF). This is dependent on the buyers (discoms) and not within the control of the power producers such as NTPC.

The state-owned power producer was down 11.65 percent or 15.40 points at the BSE in afternoon trade and stood at Rs.116.65 from its previous close of Rs.132.15 Friday.

The stock had hit a new 52-week low of Rs.116.95 in morning trade.

However, scrip of private power producers such as Tata Power and Adani Power gained in intra-day trade, as the CERC has granted compensatory tariff hike for the two private power producers.

The Tata Power scrip was up 5.02 percent or 3.95 points at the BSE and stood at Rs.82.65.

Adani Power gained 0.55 percent or 0.20 points at Rs.36.65 from its previous day's close of Rs.36.45.