Power stocks surge on state electricity boards on loan restructuring nod

Shares of power sector companies such as Adani Power, Reliance Power and Tata Power on Tuesday rose by as much as 7 per cent after the government approved restructuring of Rs 1.9 lakh crore debt of state electricity boards to turnaround the near-bankrupt distribution firms.

Pushing reforms in the power sector, the Centre on Monday evening, approved recasting of Rs 1.9 lakh crore debt of SEBs.

Adani Power stock climbed 6.71 per cent to Rs 54, while Reliance Power gained 3.89 per cent to Rs 100 on the BSE.

Among others, Tata Power rose 3.58 per cent, while Torrent Power was trading 1.84 per cent up, NTPC (0.54 pc), NHPC (0.79 pc).

Under the scheme approved by the Cabinet Committee on Economic Affairs, 50 per cent of the short-term outstanding liabilities would be taken over by state governments.

Balance 50 per cent loans would be restructured by providing moratorium on principle and best possible terms for repayments, an official statement had said on Monday.

At the end of March 2011, state discoms' accumulated losses stood at around Rs 1.9 lakh crore.

Meanwhile, BSE 30-stock index, Sensex, was trading at 18,665.34, down 11.05 points at 1122 hrs.