NTPC, Torrent Power slip after government directs gas-based power stations to operationalise plants from May 1 to June 30
The government has directed all gas-based power generating stations to operationalise their plants from May 1 to June 30 in view of rise in electricity demand due to a likely prolonged heat wave this summer. A significant portion of Gas-Based Generating Stations (GBSs) is currently unutilised, primarily due to commercial considerations.
Power companies such as NTPC and Torrent Power were trading lower on BSE on Monday (April 15, 2024) in the first trading session after the government directed all gas-based power generating stations to operationalise their plants from May 1 to June 30, 2024.
Here's how NTPC and Torrent Power were trading on Monday.
NTPC share price
The power PSU slipped by 2.49 per cent to the day's low of Rs 352.65 on Monday after the previous close of Rs 361.65.
The stock of the power company was trading lower by 2.12 per cent, or Rs 7.65, at Rs 354.00, at 9:42 am on Monday.
The stock's performance came after it hit a 52-week high for four consecutive sessions on April 8, 9, 10, and 12.
Torrent Power share price
The stock of the firm slipped by 4.18 per cent to the day's low of Rs 1,516.85 on Monday after closing at Rs 1,583.05 in the previous session.
The stock was trading lower by 4.34 per cent, or Rs 68.70, at Rs 1,514.35.
What is government order?
The government has directed all gas-based power generating stations to operationalise their plants from May 1 to June 30 in view of a rise in electricity demand due to a likely prolonged heat wave this summer.
A significant portion of Gas-Based Generating Stations (GBSs) is currently unutilised, primarily due to commercial considerations.
"To ensure maximum power generation from Gas-Based Generating Stations, the government has issued directions to all Gas-Based Generating Stations under Section 11 of the Electricity Act, 2003, under which the appropriate government may specify that a generating company shall, in extraordinary circumstances operate and maintain any generating station in accordance with the directions of that government," the statement said.
(With inputs from PTI)
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