Power companies like 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-fired power plants to commission their plants from April 1. May to June 30, 2024.
This is how NTPC and Torrent Power were trading on Monday.
NTPC share price
The PSU fell 2.49 per cent to the day's low of Rs 352.65 on Monday after the previous close of Rs 361.65.
Shares of the power company were trading down 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 company's shares fell 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 down 4.34 per cent, or Rs 68.70, at Rs 1,514.35.
What is government order?
The government has ordered all gas-fired power plants to commission their plants from May 1 to June 30 in view of a surge in electricity demand due to a likely prolonged heat wave this summer.
A significant portion of gas-based generating stations (GBS) are currently unused, mainly due to commercial considerations.
"To ensure maximum generation of power from gas-based generating stations, the government has issued instructions to all gas-based generating stations under Section 11 of the Electricity Act, 2003, according to which "The relevant government may specify that a generating company shall, in extraordinary circumstances, operate and maintain any generating station in accordance with the instructions of that government," the statement said.
(With input from PTI)
