Deepak Fertilisers spurts as Delhi High Court asks Centre to resume gas supply to company's plant

NEW DELHI: Stocks of Deepak Fertilisers and Petrochemicals Corp Ltd (DFPCL) surged as much as 13 per cent in trade today after the Delhi High Court ordered the central government to resume supply of gas to the company's plant in Maharashtra.

The stock ended the day 7.63 per cent higher or Rs 10.10 at Rs 142.55.

The government had ordered gas suppliers Reliance Industries and GAIL (India) to stop supplies to Deepak Fertiliser’s plant in Raigad district in May last year, following which the company had moved the Delhi High Court, calling the order arbitrary and unfair.

The stock has hit an intraday high of Rs 149.70 and a low of Rs 139.00. Volumes were higher, with total of 1.80 lakh shares changing hands on the BSE.

This was more than 8 times its two-week average of a meagre 21,000 shares.

“We are yet to go through the details of the order to ascertain the full impact,” the company told ET Now.

"It is not open for the respondents to suspend the supply of gas to the petitioner (DFPCL) while continuing the same to other P&K manufacturing units, namely, Rashtriya Chemicals and Fertilisers Limited (RCF) and Gujarat State Fertiliser Corporation Limited (GSFC)," PTI reported Justice Vibhu Bakhru as saying.

"In the circumstances, the respondents are directed to resume the supply of gas to the petitioner till the time the Government of India are in a position to implement their policy to discontinue supply of gas for manufacture of P&K fertilizer by other units as well," Bhakhru added.

The court further said it was "incumbent upon the respondents to implement its policy uniformly and without discrimination".