Promonique
Promonique
Rayzon
Rayzon
EPR Subscription Banner
EPR Subscription Banner
Home » News » Ministry of Power extends the Sec 11 deadline to October 15

Ministry of Power extends the Sec 11 deadline to October 15

By April 17, 2024 10:27 am IST

Ministry of Power extends the Sec 11 deadline to October 15
.

The Government of India has extended the mandate for imported coal-based power plants under Section 11 of the Electricity Act, expecting peak power demand at 234 GW in September 2023, 7 percent higher than in September 2023.

Tata Power, Torrent Power, and NTPC have touched all-time highs today. The sector has been under investors’ radar in the last financial year due to strong energy demand and robust investment by public and private sector companies in expanding their generation capacity. With the Indian Meteorological Department (IMD) expecting extreme heat until June and the government anticipating power demand to peak between 256 and 260 GW this summer, almost ~7 percent more than the peak power demand of 243 GW in September 2023, analysts have turned bullish on the power sector stocks.

The Ministry of Power has announced an extension of the deadline for imported coal-based power plants to operate at total capacity until October 15, compared to the previous deadline of June 30. This update was provided in an official notification released on Friday. Notably, imported coal prices are considerably higher than domestic coal, resulting in increased tariffs. However, operating under Section 11 allows the variable cost to be passed through, providing relief to power plant operators.

Advertising

EPR Android App Banner

Building on the momentum of last year, power sector stocks have outperformed broader indices in the current calendar year as well. However, analysts are still bullish on the sector stocks as energy demand and investment in expanding the capacity—renewable and conventional. Torrent Power, BHEL, and Tata Power are the top three gainers in the current year, rising 70 per cent, 33 per cent, and 31 per cent, respectively.

“A continuation of electricity demand growth at ~6percent+ levels over the next few years is the fulcrum which supports the roadmap and positive outlook of power capacity addition—both green and even grey—until on-demand/load following green power begins displacing greenfield thermal projects on economics,” said a recent Axis Capital report on the sector. Axis Capital’s top picks include Tata Power, NTPC, CESC, and JSW, while it has a sale on Torrent Power, Power Grid, and IEX.

Apart from Axis Capital, JM Financial is also positive on power sector stocks. “Given the focus of all Indian utilities on enhancing their RE portfolio with storage, we are aligned with their strategic objectives and optimistic about their earnings trajectory,” says JM Financial’s recent report. JM Financial has a ‘Buy’ rating on Tata Power, NTPC, Power Grid, Coal India, JSW Energy, NHPC, Suzlon, and BHEL, a ‘Hold’ rating on CESC, and a ‘Sell’ rating on SJVN and Torrent Power.

Cookie Consent

We use cookies to personalize your experience. By continuing to visit this website you agree to our Terms & Conditions, Privacy Policy and Cookie Policy.

Android App
Android App

Events

RenewX
RenewX
Wiretech 2025
Wiretech 2025
Power Gen
Power Gen
India Green Energy Expo
India Green Energy Expo

Our Sponsors

Our Sponsors

Wika
Wika
Ramelex
Ramelex
Rayzon Solar Pvt Ltd
Rayzon Solar Pvt Ltd
Akansha
Akansha
Andritz Hydro Pvt Ltd
Andritz Hydro Pvt Ltd
Vyoma Switchgear
Vyoma Switchgear
Skipper Limited
Skipper Limited
Joint Well
Joint Well
Kp Group
Kp Group
Credence Solar
Credence Solar
Grew Solar
Grew Solar
Nirmal
Nirmal
Meco Instruments Pvt Ltd
Meco Instruments Pvt Ltd
Novasys
Novasys
HPL Electric Power
HPL Electric Power
Sun Bond
Sun Bond
Supremesolar
Supremesolar
Vsole Solar
Vsole Solar
Elev8 Lift
Elev8 Lift
Power trac Group
Power trac Group
Omicron
Omicron
Ganz Electric
Ganz Electric
Eplan
Eplan
Aeron Composite Pvt Ltd
Aeron Composite Pvt Ltd
Eaton
Eaton
A-1 ELECTRICALS
A-1 ELECTRICALS
Ashone Technologies
Ashone Technologies
MENNEKES Electric India
MENNEKES Electric India
PRAMA HIKVISION INDIA
PRAMA HIKVISION INDIA
Motwane Manufacturing
Motwane Manufacturing
Sun Cables
Sun Cables