Shares of power generation and distribution companies have rallied on the bourses up to 5% after the Cabinet Committee on Economic Affairs (CCEA) today allowed power companies to pass on the cost of imported coal to customers.
Tata Power has surged nearly 5% at Rs 85 on the Bombay Stock Exchange, followed by Adani Power and JSW Energy 3% each at Rs 43 and Rs 47 respectively, while Reliance Power is up 2% at Rs 66.
“This mechanism of passing on the cost of imported coal will be applicable to the nearly 78,000 megawatts of thermal power generating stations commissioned after 2009,” the PTI report suggests.
The move is likely to help power companies like Adani Power, CESC, Reliance Power, etc.
