Rising discom dues pull down power stocks

Outstanding dues of state distribution companies (discom) to power companies surged nearly 25 per cent to Rs. 39,498 crore in the October 2018,  adding to woes of electricity generating firms. 

Around 34 power companies which are going through turbulence have stress loan of around Rs. 1.8 lakh crore which is likely to be reported to NCLT for resolution under the bankruptcy code. 

Besides, banks have recognised US$15.3 billion of NPAs in the power sector and have already provided US$7.6 billion for four assets being resolved in NCLT at 50 per cent of the exposure. 

During Monday’s trading session, the stock of Tata Power dipped almost 1.7 per cent to touch intraday low of Rs. 73.6 apiece. At 14.15 hours, the stock was trading at Rs. 73.8 apiece, down by almost 1.4 per cent from its previous close. 

The stock of Adani Power too declined almost 1.3 per cent to touch a day's low of Rs. 49.50. At 14.15 the stock was trading at Rs. 49.7, down by a per cent. 

Government-owned NTPC’s stock was down by almost 1.5 per cent to a day's low of Rs. 145.05 apiece.