Adani Power, Tata Power, Torrent Power, REC, CESC, Adani Transmission, Power Finance Corporation, and Indian Energy Exchange (IEX) were up between 3 per cent and 10 per cent in early morning trade today. Besides, Bharat Heavy Electricals (BHEL), Kalpataru Power Transmission and KEC International from the heavy electrical equipment sector were trading in green on the BSE. In comparison, the S&P BSE Sensex was down 1.4 per cent at 31,552 points at 09:26 am.
“Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) will infuse liquidity in the discoms to the extent of Rs 90,000 crore in two equal instalments. This amount will be used by discoms to pay their dues to transmission and generation firms,” the FM said.
The government has noted that the disbursement of loans would be against state guarantees. In addition, the disbursal would be related to specific measures such as DISCOMs providing facility for digital payments, liquidation of state government dues to DISCOMs, and reduction in financial and operational losses of DISCOMs.
“Accordingly, details on the timing and quantum (likely in tranches) of this disbursal are awaited. Further, the CPSEs would be asked to give rebates to DISCOMs for their payments. Whether this would imply possible higher rebates by CPSEs to DISCOMs remains to be seen,” brokerage firm Motilal Oswal Securities said in sector update.