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Power stocks shine as cabinet ups lending limits for discoms

20 Aug 2020 Evaluate

Power stocks were trading higher as, in the wake of the coronavirus pandemic, the Cabinet Committee on Economic Affairs has approved measures to provide liquidity in the power sector due to the financial stress caused by covid-19.

Tata Power Company is currently trading at Rs. 62.05, up by 5.30 points or 9.34% from its previous closing of Rs. 56.75 on the BSE. The scrip opened at Rs. 56.10 and has touched a high and low of Rs. 62.20 and Rs. 56.10 respectively.

JSW Energy is currently trading at Rs. 59.00, up by 1.95 points or 3.42% from its previous closing of Rs. 57.05 on the BSE. The scrip opened at Rs. 57.60 and has touched a high and low of Rs. 59.90 and Rs. 56.80 respectively.

NTPC is currently trading at Rs. 101.55, up by 6.90 points or 7.29% from its previous closing of Rs. 94.65 on the BSE. The scrip opened at Rs. 94.50 and has touched a high and low of Rs. 101.85 and Rs. 94.45 respectively.

The Cabinet approved a one-time relaxation to Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) for extending loans to Distribution Companies (DISCOMs) above limits of working capital cap of 25% of last year’s revenues under Ujwal DISCOM Assurance Yojana (UDAY).

The one-time relaxation will help in providing liquidity to the power sector and ensure payments by State Governments to DISCOMs. As per the notification, the liquidity of the power sector is not expected to improve in the short term, as economic activity and power demand will take some time to pick up.  There is, thus, an immediate need to infuse liquidity in the power sector for continuation of power supply.

Tata Power Share Price

436.00 -3.20 (-0.73%)
08-May-2026 16:59 View Price Chart
Peers
Company Name CMP
NTPC 402.20
Tata Power 436.00
Adani Power 225.15
Power Grid Corp 313.90
Torrent Power 1724.80
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