As index heavy-weights continued to witness selling pressure, Indian equity markets remained well below the dotted line in the post noon trading session. Majority of the sectoral indices are trading negative with technology, capital goods and banking stocks being the biggest losers. Consumer durable, realty and auto are the only stocks trading positive.
Most of the power stocks are trading in red with GVK Power & Infra and KSK Energy being the biggest losers. According to a leading financial daily, the draft policy document on the second phase of Jawaharlal Nehru National Solar Mission has expressed hope that the country will achieve grid parity by 2017, five years ahead of the original target of 2022. The ministry of new and renewable energy expects solar tariff to fall to Rs 6 per unit in the second phase of the solar mission. In the first phase of the solar mission the lowest tariff bid received was Rs 7.4 per unit. In recent times, domestic coal shortage and reliance on imported coal has made conventional energy more expensive paving demand for solar power. In the second phase of the solar mission, the government plans to provide viability gap funding for 1,520 MW of solar photo voltaic projects and 1,080 MW of solar thermal projects. Due to limited availability of conventional power from unallocated central quota, the government plans to waive off power bundling in the second phase of the solar mission. The mission targets to bring cumulative solar capacity to 10 gigawatt by 2017.
Moving on to other news from sector - It is reported that power major National Thermal Power Corporation (NTPC) is looking to acquire fresh coal mines to raise its incremental capacity. These would help towards firing about 8,500 MW worth of capacity for the power company. This development comes in a few days after the government decided to re-allocate the three coal blocks. It is also reported that there are about 54 mines that would be up for auction once the roadmap forth auction is set and that power companies have asked the ministry to ascertain the geological reserves in advance. This process would help towards attracting more investors towards the auctions.