Power generation and supply stocks proved electrifying in a flattish market on Tuesday on rumours that the Electricity Bill is in the offing very soon.
Among power companies that moved upstream on Tuesday were Ahmedabad Electricity (up 3.72% to Rs 53), Gujarat Industries Power (up 2.17% to Rs 18.85), Tata Power (up 1.69% to Rs 117.15) and Surat Electricity (up 2.22% to Rs 69).
Meanwhile, the BSE Sensex was flat at 3,284.34, up 4.51 points.
Market buzz has it that that the Centre may undertake power sector reforms shortly and will also provide sops for the crucial sector in the Union Budget for 2003-04.
In December 2002, a parliamentary panel had cleared the Electricity Bill that proposes to rationalise electricity tariff. The passage of the Electricity Bill, in fact, will give power companies access to distribution and transmission and they may even be made eligible to supply power directly to consumers.
Apart from the emphasis on private participation, competition and efficiency; introduction of anti-theft laws at the state level, open access to the transmission and distribution network and time-bound restructuring of the state electricity boards is also being considered.
Over the last one month, the six listed power generation and supply companies gained Rs 115.85 crore (Rs 1.15 billion) or 2% in market capitalisation to Rs 6,057.83 crore (Rs 60.57 billion) from Rs 5,941.98 crore (Rs 59.41 billion).
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