Shares in Tata Power traded at the top of the 50-share Nifty Thursday. The stock outperformed the broader markets and the BSE Power index rising 5 per cent to Rs 107.90.
The strong gains came as the Central Electricity Regulatory Commission (CERC) accepted the company's affidavit of negotiations with states. The next date of hearing will be decided by CERC in a week's time.
Tata Power's Mundra plant in Gujarat runs on imported coal and has been suffering from mounting losses because the company cannot pass rising cost of coal to buyers. The Mundra plant sources most of its coal from Indonesia, which has changed its mineral export rules pushing up the cost of coal for Indian buyers.
Tata Power had filed a petition with India's Central Electricity Regulatory Commission asking for a tariff hike for its Mundra project. The Mundra UMMP is a 4,000 MW plant built with an investment of nearly Rs. 20,000 crore.
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