Reliance Power, Tata Power tank post CAG report

The Comptroller and Auditor General?s (CAG) has accused the government of favouritism and benefiting these companies.

Reliance Power and Tata Power tanked more than 5% each on reports that the Comptroller and Auditor General’s (CAG) has accused the government of favouritism and benefiting the two companies.

Reliance Power dipped 6% to Rs 87.40, declining over 7% from day’s high on reports the Comptroller and Auditor General’s (CAG) raised questions on company’s Sasan Power Project.

“On the Sasan Power Project of Reliance Power, the auditor said that differential tariff has led to a gain of Rs 29,000 crore for the company. CAG said bidding process was vitiated by allowing Reliance Power to use excess coal from three blocks allocated to Sasan project,” the report added.

 

Reliance Power stock opened at Rs 93.75 and hit a high of Rs 94.30 on the NSE. A combined 8.8 million shares changed hands on the counter so far on both the exchanges. Tata Power too tanked 6% at Rs 94.90 on the NSE.