Energy stocks are trading in the green led by Essar Oil and Mangalore Refin. & Petrochem. Ltd (MRPL). According to a leading financial daily, Gujarat Gas Company Limited (GGCL) has entered into an agreement with state-run Gujarat State Petroleum Corporation Ltd (GSPC) for purchase of 1.1 million standard cubic meters per day (mmscmd) of re-gasified LNG (RLNG) during January. Against its monthly gas requirement of 3 mmscmd, GGCL buys about 1.5 mmscmd of RLNG from spot market, while rest of the requirement is met through domestic gas supplies from its long-term suppliers including Gas authiority of India Ltd (GAIL) and Cairn India. The company is also adding new geographical areas for domestic and industrial gas distribution. They added over 58 kms of gas pipeline around Surat district including areas such as Bardoli, Abrama, Sachin, Olpad etc. Also, they have opened 8 CNG stations during the year.
Power stocks are trading strong led by PTC Limited and Reliance Infra. According to a leading daily, power ministry of India is prepared for Rs 120 bn divestment plan of National Thermal Power Corporation (NTPC). However, it is waiting for procedural clearances regarding re-allocation of coal blocks to NTPC before going ahead with the divestment plan. Post the re-allocation NTPC is expected to fetch better valuations. We may note here that the government has decided to re-allocate three coal blocks to NTPC which are Chatti-Bariatu, Kerandari and Chatti-Bariatu (South). Earlier, these were taken back from NTPC on the ground of delays in developing them.