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NTPC stock sinks over 11 percent post regulator's order

Posted on Feb 24 2014 | IANS

Mumbai, Feb 24 : State-owned power producer NTPC's scrip Monday sank over 11 percent after the Central Electricity Regulatory Commission released final regulations for tariff determination applicable from 2014-15 to 2018-19 for projects based on an assured return on equity (RoE) business model.

The NTPC's stocks at the Bombay Stock Exchange (BSE) closed at Rs.117.05, down 11.43 percent or 15.10 points from its previous close of Rs.132.15 Friday.

The stock hit a new 52-week low of Rs.116.95 in morning trade.

The key changes made by the CERC include shift in the incentive regime from plant availability factor (PAF) to plant load factor (PLF). This is dependent on the buyers (discoms) and not within the control of the power producers such as NTPC.

However, scrip of private power producers Tata Power gained in the day's trade, as the CERC has granted compensatory tariff hike for the two private power producers.

The Tata Power scrip was up 5.02 percent or 3.95 points at the BSE and stood at Rs.82.65.

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