MUMBAI: Shares of India companies owning gas-operated power plants rose after the government said it will boost imports of liquefied natural gas (LNG) to improve electricity generation and revive plants in a bid to fuel economic expansion.
Torrent Power Ltd jumped 7.1 percent, GVK Power & Infrastructure Ltd rose 3.2 percent, while Lanco Infratech Ltd rose 4.4 percent.
"Government will provide subsidy directly to the distribution companies for purchasing gas-based power. This will help the gas-based power plants to operate at a capacity utilization of about 30 percent and generate cash on their idle assets," Morningstar analyst Piyush Jain said in a note.
Gas suppliers and importers also gained. Gujarat State Petronet jumped 6.1 percent, while Petronet LNG and Gail (India) rose 0.9 percent each.
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