Power sector stocks surge after govt launches PUShP to ensure availability of power during peak demand season

Adani Transmission is currently trading at Rs. 903.85, up by 43.00 points or 5.00% from its previous closing of Rs. 860.85 on the BSE.

adani transmission gains on raising 500 million via notes
Adani Transmission

NTPC is currently trading at Rs. 180.65, up by 1.20 points or 0.67% from its previous closing of Rs. 179.45 on the BSE.

NHPC is currently trading at Rs. 41.01, up by 0.22 points or 0.54% from its previous closing of Rs. 40.79 on the BSE.

Power Grid Corporation Of India is currently trading at Rs. 226.50, up by 0.65 points or 0.29 % from its previous closing of Rs. 225.85 on the BSE.

In order to ensure greater availability of power during the peak demand season, the Government has launched a High Price Day Ahead Market and Surplus Power Portal (PUShP). The surplus power portal is a one-of-its-kind initiative, reflecting the ingenuity of the Ministry of Power and the Regulator.

Distribution Companies have tied up long term PPAs for power supply. They have to pay fixed charges even when they do not schedule the power. Now the DISCOMs will be able to indicate their surplus power in block times / days / months on portal. Those DISCOMs who need power will be able to requisition the surplus power.

The new buyer will pay both variable charge (VC) and fixed cost (FC) as determined by Regulators. Once power is reassigned, the original beneficiary shall have no right to recall as entire FC liability is also shifted to the new beneficiary. Financial liability of new buyer shall be limited to quantum of temporary allocated / transferred power. This will reduce the fixed cost burden on the DISCOMs, and will also enable all the available generation capacity to be utilized.

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