GVK, Lanco jump up to 4% on gas auction result

NEW DELHI: Shares of GVK Power & Infrastructure and Lanco Infratech jumped up to 4 per cent in Monday's trade after the power companies emerged as successful bidders in the third round of imported natural gas auction, which will revive nine stranded power plants.

Shares of GVK Power climbed 2.42 per cent to hit a high of Rs 6.76 on the BSE. Lanco Infratech, on the other hand, jumped 3.92 per cent to Rs 5.29. Other companies that emerged as successful bidders include GMR Energy, Ratnagiri Power and Sravanthi Energy.

The auction was to be followed by bidding held by the government on March 15, which was called off after bidders unexpectedly quoted zero subsidy for the gas. Companies compete in a reverse e-auction by bidding the lowest amount of subsidy they need to supply the generated electricity from gas stations to distribution companies at Rs 5.50 per unit, PTI reported.

The average price of this imported gas ranges from $7.2-7.5 per mmBtu.