Shares of eight power genration firms rose by 0.39% to 14.31% after the Central Electricity Regulatory Commission raised the return on equity for power units to 15.5% from existing 14%.
At 15:20 IST, the BSE Power index was up 1.19% at 1,798.72. It outperformed the Sensex, which was down 2.60% at 9,087.41.
Reliance Power (up 0.39%), Tata Power (up 1.18%), Reliance Infrastructure (up 1.63%), GVK Power & Infrastructure (up 2.98%), CESC (up 2.76%), NTPC (up 4.15%), Torrent Power (up 6.05%), and Neyveli Lignite Corporation (14.31%), soared.
Return on equity (RoE) is the after-tax profit of a company as a proportion of its equity, expressed in percentage. Central Electricity Regulatory Commission (CERC) said that the new RoE would be applicable for the period from 2009 to 2014. The RoE for projects completed on schedule is at 16%, the CERC statement said.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment