Mumbai: Shares of companies related to power sector soared nearly 12 percent Thursday after the government decision to set up Power System Operation Corp as an independent firm for ensuring neutrality of the transmission system operations.
Torrent Power's scrip surged 11.93 percent, while PTC India rose by 5.04 percent and BHEL went up by 4.91 percent on the BSE.
Similarly, Reliance Infrastructure climbed 4.90 percent, Siemens (4.62 percent), Jaiprakash Power Ventures (3.98 percent), Tata Power (3.69 percent), Adani Power (3.62 percent) and Reliance Power (3.17 percent).
Following the rally in these scrips, the BSE power index gained 3.26 percent to 1,999.37.
The government has decided to set up Power System Operation Corp (POSOCO) as an independent government company, an official statement said.
It was earlier part of central transmission utility Power Grid Corporation. The exercise of hiving off POSOCO was aimed at putting in place an independent, secure and reliable power system operation entity at the national level as mandated under the Electricity Act, 2003.
"With transmission coming under competition and multiple transmission licensees operating, need was felt to ensure the independence and neutrality of the system operation function," the statement said.
