Once again, the fear of a ban on DG gensets is back to stalk the industry. News is that the Ministry of Power is looking at the option of banning usage of DG genset in residential areas.
In a draft notification, the Ministry has asked distribution licensee to supply uninterrupted power supply in metro cities to prevent use of DG sets and consumer using DG sets to endeavour to shift to cleaner technology like battery.
This, though still in the ‘draft’ stage, if implemented could pose huge trouble for companies like Cummins India, which is today among the top five losers on the BSE as it is the leading producer in residential gensets.
The stock price fell 3% to an intraday low at Rs.891.50 with its 10% LC for the day at Rs.826.05. Its 52-week high is at Rs.1065.
Other makers of DG gensets are – Kirloskar, Mahindra, Ashok Leyland, Bajaj.