Energy stocks are trading strong led by Chennai Petroleum and Gas Authority Of India Ltd. (GAIL). According to a leading financial daily, Bharat Petroleum Corporation Ltd's (BPCL's) subsidiary Bharat Petro Resources (BPRL) is expected to drill by the end of this fiscal year. It is undertaking drilling in India, Mozambique, Brazil, Australia and Indonesia. It also expects to make new discoveries in its blocks in India. Overall BPCL has 27 blocks, 9 in India and 18 abroad. The company strategy is to consolidate its positions in these blocks and basins. BPCL wants to become an integrated oil company and as per the management, the entry into the upstream exploration and production sector in 2006 is a step towards this. Earlier, the idea behind the formation of BPRL was to insulate BPCL from oil price volatilities. At present, BPRL participates in bidding for oil and gas blocks on behalf of BPCL.
Power stocks are trading in the red. Reliance Infrastructure and Siemens are the biggest losers while GVK Power and GMR infrastructure are the biggest gainers. According to a leading financial daily, state run power producer National Thermal Power Corporation (NTPC) is planning to make an investment of Rs 410 bn for setting up 4 thermal projects in the coal rich states of Madhya Pradesh and Chhattisgarh in the next five years. The combined power capacity of all the 4 projects will be over 8,300 mega watt (MW). The company would set up three projects having capacity of 1,980 MW project at Barethi, 1,320 MW at Khargone and 2,640 MW at Gadarwara in Madhya Pradesh and a 2,400 MW Lara project in Chhattisgarh. NTPC has already signed preliminary agreements with the governments of Madhya Pradesh and Chhattisgarh for the execution of four coal based power projects.