MUMBAI (Reuters) - Shares of India companies owning gas-operated power plants rose after the government said it will boost imports of liquefied natural gas (LNG) to improve electricity generation and revive plants in a bid to fuel economic expansion.
Shares in Torrent Power Ltd rose 3.3 percent, GVK Power & Infrastructure Ltd was up 1.3 percent, while Lanco Infratech Ltd gained 2.2 percent at 12:12 p.m.
"Government will provide subsidy directly to the distribution companies for purchasing gas-based power. This will help the gas-based power plants to operate at a capacity utilization of about 30 percent and generate cash on their idle assets," Morningstar analyst Piyush Jain said in a note.
Gas suppliers and importers also gained. Gujarat State Petronet jumped 4.2 percent, Petronet LNG rose 1.1 percent and Gail (India) added 0.3 percent.
(Reporting by Abhishek Vishnoi; Editing by Rafael Nam)
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