Power firms' shares surge as govt vows more LNG imports
26 March 2015Shares of companies owning gas-operated power plants rose after the government said it will boost imports of liquefied natural gas (LNG) to improve electricity generation and revive plants suffering from a perpetual shortage of fuel.
Torrent Power Ltd jumped 9.46 per cent, GVK Power & Infrastructure Ltd rose 4.34 per cent, and Lanco Infratech Ltd rose 5.5 per cent in intraday trade today.
"Government will provide subsidy directly to the distribution companies for purchasing gas-based power. This will help the gas-based power plants to operate at a capacity utilization of about 30 percent and generate cash on their idle assets," Morningstar analyst Piyush Jain said in a note, according to a Reuters report.
Gas suppliers and importers also gained. Gujarat State Petronet jumped 8.6 per cent, while Petronet LNG and Gail (India) rose 1.59 per cent each in intraday trade.