Tata Power and Reliance Infrastructure fell by 2.44% to 3.87%, respectively, at 11:28 IST on BSE as Maharashtra Chief Minister Prithviraj Chavan will announce in two days, a decision on cutting power tariffs in Mumbai.
Reliance Infrastructure (RInfra) (down 3.87%) and Tata Power Company (down 2.44%), edged lower.
The S&P BSE Sensex was down 305.84 points, or 1.45% at 20,827.72.
Shares of Reliance Infrastructure had undererformed the market over the past one month till 24 January 2014, sliding 8.26% compared with the Sensex's 0.48% rise. The scrip had underperformed the market in past one quarter, falling 6.80% as against Sensex's 1.97% rise.
Shares of Tata Power Company had underperformed the market over the past one month till 24 January 2014, sliding 12.12% compared with the Sensex's 0.48% rise. The scrip had underperformed the market in past one quarter, falling 6.42% as against Sensex's 1.97% rise.
Similar to an announcement made by Chief Minister Arvind Kejriwal in Delhi, Chavan on Sunday, 26 January 2014, said that his government is examining the possibility of auditing private power discoms. Calling on his party colleague Sanjay Nirupam to end his fast, Chavan said that there was a need to check if surcharge was being levied beyond the period it was approved for. Following his announcement, Nirupam, who was on an indefinite strike, has ended his protest on Sunday. The Congress MP, however, warned that he will go on fast again if his demands are not met.
The state cabinet on 20 January 2014, approved a 20% power tariff cut for Maharashtra except for much of Mumbai. The reduction is for all consumers residential, commercial, industrial and agricultural supplied by Maharashtra State Electricity Distribution Company (MSEDCL), including those in Mulund, Kanjurmarg and Bhandup. It is not applicable in the rest of Mumbai since the remaining areas are supplied by BEST, Tata Power and RInfra.
Later, Congress MP Sanjay Nirupam started his agitation demanding that the tariff subsidy be extended to Mumbai also.
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