India's high court agrees to hear NTPC power pricing appeal

NEW DELHI, March 19 Wed Mar 19, 2014 4:21am EDT

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NEW DELHI, March 19 (Reuters) - Delhi's High Court agreed on Wednesday to hear a petition by India's state-run power producer NTPC Ltd challenging a recent regulatory ruling on electricity pricing, the company said.

The Central Electricity Regulatory Commission said last month that it would tighten incentive structures on capacity utilisation and tax treatments for NTPC, sending shares in India's top power producer down sharply to a five-year low.

Analysts predict that the new pricing structure will likely hit NTPC's earnings.

The High Court will hear the company's petition at the next hearing on May 19, NTPC said.

Shares in NTPC were up 0.2 percent at 118.1 rupees per share by 1330 IST, outperforming a flat S&P Sensex, the 30-share benchmark index. (Reporting by Suchitra Mohanty and Tommy Wilkes; editing by Malini Menon)

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