Tata Power gets "on"
Tata Power is currently the top gainer on the BSE, up 3.66% at Rs.97.60, with an intra day high at Rs.99.70. Volumes are huge at almost 2 lakh shares being traded today morning compared to around 3 lakh shares over the past two weeks.
The stock is going through what Adani Power went through a few days ago. The Central Electricity Regulatory Commission (CERC) passed its order on Tata Power, stating that the company should be compensated for the increase in coal cost. Ditto what it had passed for Adani. The CERC has directed the five state Govt’s - Gujarat, Maharashtra, Rajasthan, Punjab and Haryana to compensate Tata Power for losses it incurred for importing coal for its Mundra UMPP.
The CERC has directed the parties to find out an acceptable compensatory tariff by May 15 over and above the tariff decided under the PPA to mitigate the hardship arising out of the need to import coal at benchmark price.