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PFC, RECL surge on buzz TNEB hikes power tariff-news02042012


Power Finance Corporation (PFC) rose by 5% to hit weekly high at Rs192.65 and Rural Electrification Corporation Ltd ( RECL) surged over 5% and touched weekly high of Rs216.80, on reports the Tamil Nadu Electricity Board has announced a 37% hike in the power tariff.


According to reports, the Tamil Nadu Electricity Board ( TNEB) announced a 37% hike in the power tariff, covering both domestic and industry sectors, a move that will fetch an additional Rs 7874 crore and bail out the state electricity board, which is in the red.

Power Finance Corporation and Rural Electrification Corporation provide financial assistance to state electricity boards, state government departments and rural electric cooperatives for rural electrification projects. According to recent reports, TNEB had accumulated losses of Rs 40700 crore as of March 2011, due to several years of no tariff increase.

At 2.54 pm, PFC was trading at Rs191.95, up by 4.32%, with a volume of 3.40 lakh shares on the BSE.
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