NEW DELHI: The government has decided against lowering returns of regulated power assets in a big relief to investors of central public sector enterprises like NTPCNSE 2.25 % and Power Grid Corp, whose share prices dropped last week on apprehensions of tariff revision.
The proposal that was being considered to help power distribution companies amid lockdown has been dropped on concerns of its effect on investment sentiments, a senior Central government official said.
Share prices of NTPC and PGCIL fell lby about 5% last week after ET reported that the government is considering issuing an advisory to central PSUs, asking them to halve the fixed charges they collect from the state power distribution companies. Lenders and project developers had said this would hurt investment sentiments towards the projects considered to be safe havens, though some industry insiders supported the move in extraordinary times.
