BANGALORE: The newly elected government stands behind their leader, Narendra Modi, as he is a literate when it comes to power harnessing. The kind of policies he followed in Gujarat and the importance he gives on clean power generation will be a key prospect in the power sector. With the budget in the process, power sector will see a higher rise in stocks.

Since the change in government, the stocks in power have gone up by 15 percent, where investors are pulling out of investments made in IT, Pharmacy and consumer goods space and are opting to divert there stocks on power. Some private companies have already benefitted from this transition. JP Power surged 30 percent, whereas GMR Infra and Reliance power companies saw a growth of 18 percent and 17 percent respectively.

However, there were subsequent decline and loses to technology companies that witnessed up to 5 percent decline in the stocks. There is expected to be a higher rise in stocks in the power sector after the budget session, especially in the solar and wind energy.

The government plans to expand the wind and solar sector as there is potential growth for jobs and investments. The government has gone all out to give companies rights to expand up to 12 nautical miles in the coast line region. They will work towards energy security and reduce emission.

The Modi led government is planning to follow autonomy of power companies as it was granted in Gujarat when Modi ran it. This comes in the awakening of PSU’s not holding up to their duty of supplying and creating more energy. Private energy companies have filed exemption pleas on customs duty on coals and on maintenance of goods. If these pleas are approved then companies such as, JSW Energy, Adani power and Tata power companies will benefit as they consume a huge of coal.

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