Energy stocks are trading in the green led by Petronet LNG and Reliance Industries. According to a leading financial daily, GAIL will supply liquefied natural gas (LNG) for the first block of Karnataka Power Corporation Limited's ( KPCL) proposed 700 MW Bidadi Combined Cycle Power Plant (BCCP) on spot market basis. KPCL will execute a gas transmission agreement (GTA) with GAIL in the due course. As per the agreement reached between KPCL and GAIL recently, the KPCL agreed to lease 2 acres and 6 guntas of land for a period of 15 years at a lease rent of Rs 100 per acre per annum against which KPCL would be exempted from termination payment and bank guarantee to GAIL. The government has also approved KPCL to accept the proposal of GAIL for providing the Letter of Credit covering three fortnights as per the draft gas transmission agreement.
Automobile stocks are trading mixed with Force Motors and Escorts leading the gains while Hero MotoCorp and TVS Motors were on the losing side. As per a leading financial daily, automobile company Mahindra and Mahindra's (M&M) proposed Rs 18 bn testing facility in Tamil Nadu is stuck on land issues. The facility located at Cheyyar in the state was yet to receive land from the government due to procedural delays. Meanwhile, M&M is doing the testing in a small-scale unit at Mahindra World City, 40 kms away from Chennai. The delay is hampering M&M's other plans including its desire to set up a Rs 40 bn car manufacturing plant.