NTPC shares rebound, rise over 2% on value-buying

Mumbai: Shares of NTPC today rose by over 2 percent on value-buying, a day after the stock received severe drubbing, amid concerns that the proposed electricity tariff regulation would have a negative impact on the country’s largest power producer.

NTPC’s stock ended the day at Rs 139.30, up 2.43 percent from its previous close on the BSE. During the day, the scrip gained 3.23 percent to Rs 140.40.[caption id=“attachment_1282389” align=“alignleft” width=“380”]  A NTPC plant. Image courtesy NTPC[/caption]

At the NSE, the stock settled at Rs 139.20, up 2.32 percent.

The stock was the best performer among the blue-chips on both Sensex and Nifty.

In the previous session, shares of NTPC had tanked by over 11 percent.

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CERC has issued draft regulations for tariff determination during FY15-19 applicable for government companies.

Meanwhile, state-run utility NTPC on Tuesday said the company’s generation incentives should be linked to the actual power produced instead of supply.

The draft guidelines of the Central Electricity Regulatory Commission (CERC) have proposed that the incentives given to the thermal power projects should be linked to the PLF (plant load factor) of the plant and not PAF (plant availability factor).

The company had said that it will respond to the draft regulations by the CERC.

Revision of tariff regulations is reviewed every five years by CERC. The existing regulations (2009-14) will expire on 31 March 2014 and the revision of guidelines for 2014-19 is underway.

PTI