CERC allows Tata Power to raise power tariffs, stock spikes

Tata Power Company , one of the largest private power producers in India, gained more than 4 percent in early trade on Tuesday after the Central Electricity Regulatory Commission (CERC) allowed the company to raise power tariffs.

CERC has passed a landmark order extending relief in the form of a compensatory tariff to Tata Power for its project in Gujarat.

While responding to the order, Tata Power said that the order is an important step to resolve coal-based power projects issue.

CERC has asked distribution companies and Tata Power to form a panel within one week.

At 09:29 hours IST, the stock went up 3.29 percent to Rs 97.25 on Bombay Stock Exchange.

The share touched its 52-week high Rs 113.20 and 52-week low Rs 92.90 on 05 December, 2012 and 14 February, 2013, respectively.