In a relief to Adani Group and Tata Power, the Supreme Court (SC) on Monday allowed state distribution companies (Discoms) and power producers to move Central Electricity Regulatory Commission (CERC) to amend the power purchase agreement (PPA) as per the recommendations of the high-powered committee.

Ashok Khurana, director-general, Association of Power Producers; Anil Razdan, former power secretary; P Uma Shankar, former power secretary, Pramod Deo, former chairperson of Central Electricity Regulatory Commission (CERC) and Sanjiv Bhasin, executive vice president-markets and corporate affairs, IIFL, shared their views and readings on the judgement.

"If you have a similar case of power plants that have difficulties of passing on the fuel price on very similar conditions, probably this can be taken as a precedent, but otherwise I do not think it will apply,” said Shankar.

Talking from sector perspective, Deo said, "It's the CERC that has to decide what exactly the petition filed before the Supreme Court was. Based on the high powered committee, those were the bases for all these amendments that they are proposing.”

From stock market point of view, Bhasin said, “As a disclosure, we have been positive on four stocks. Rs 22-23 for Adani Power, Tata Power for Rs 65, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC), which we think will be huge beneficiaries given that power financiers have had to bear a lot of uncertainty. We have a buy on all the four stocks and of course on decline. But we think that power could be a huge outperformer on the stock prices of this in 2019."

First Published:Oct 29, 2018 1:41 PM IST