Company News

Tata Power shares rise on proposed cost pass through to power plant

NEW DELHI, Dec 3 (Reuters) -

* Shares of Tata Power were up 8.5 percent after company says the Gujarat state’s decision to pass on cost of coal procurement will allow it to continue operations at one of its biggest power plants

* India’s supreme Court in October allowed the country’s power regulator to amend contracts of three power plants, which ran into losses when Indonesia increased coal prices, but the contracts did not allow them to pass on costs

* The three plants - Adani’s 4,620 megawatts (MW), Tata’s 4,000 MW and Essar’s 1,320 MW - are currently operating below their full capacity

* Adani Power shares rose as much as 5.4 percent, while Tata Power shares rose as much as 9.3 percent (Reporting by Sudarshan Varadhan)