NTPC shares down 5% post waiver announcement of fixed charges

Source : IANS
Author : IANS
Last Updated: Fri, May 15th, 2020, 09:30:47hrs
NTPC shares down 5% post waiver announcement of fixed charges

Mumbai: Shares of NTPC Ltd fell by around 5 per cent on Thursday, after the government announced the waiver of fixed charges for the lockdown period which distribution companies had to pay to power generation companies.

At 11.11 am, NTPC shares on the BSE were trading at Rs 88.45, lower by Rs 4.55 or 4.89 per cent from the previous close.

As part of the Rs 20 lakh crore economic package, the central government has announced Rs 90,000 crore liquidity injection for discoms. Further, in a bid to provide further relief to the discoms, the government has decided to waive fixed charges and inter-state transmission charges (by PowerGrid) against power not drawn from various public sector units during the lockdown, from March 24 to May 17.

As per the Power Ministry, this waiver of fixed charges will have an overall impact of Rs 3,000 crore on all CPSEs.

According to Emkay Global Financial Services, two largest CPSE, NTPC and PowerGrid, could see an impact of Rs 900 crore and Rs 1,100 crore respectively on their FY21 earnings due to this waiver of fixed charges.