Power, Gas related stocks gained on Thursday after the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, has approved a major policy intervention, through an innovative mechanism, to revive and improve utilization of the stranded gas based power generation capacity in the country. This capacity has been lying idle or under-utilized due to shortfall in the production of domestic natural gas in the country.

In order to revive these stranded gas based plants, the mechanism envisages importing Regasified Liquified Natural Gas (RLNG) for supply to these plants so that they can generate power. The mechanism also envisages sacrifices to be made collectively by all stakeholders, including the Central and State Governments by way of exemptions from certain applicable taxes and levies on the incremental RLNG being imported for the purpose.

Torrent Power gained the most with 3.60%, followed by GVK Power & Infrastructure (1.53%) and Lanco Infratech (2.86%). On the otherhand, NTPC (2.07%), Reliance Power (1.17%), JSW Energy (1.48%) and Reliance Infrastructure (0.36%) declined.

Among gas utilities and distribution companies, Gujarat State Petronet (4.91%), Petronet LNG (1.39%), Indraprastha Gas (0.84%), Gujarat Gas Company (0.84%) and Gail (India) (0.53%).