Tata Power Company fell 4.28% to Rs 50.30 while Adani Power lost 1.41% to Rs 35.05.
Meanwhile, the S&P BSE Sensex was down 179.21 points or 0.49% to 36,558.48.
According to media reports, the Gujarat government has decided to reverse its 2018 decision to amend the power purchase agreements (PPAs) it signed with three producers, Tata Power, Adani Power and unlisted Essar Power, to raise the tariffs in order to offset the rising cost of imported coal.
Tata Power, Adani Power and Essar Power have power purchase agreements (PPAs) to supply 4,800 MW to state-run utility Gujarat Urja Vikas Nigam for 25 years.
When coal prices in Indonesia escalated, the three power generators filed for compensatory tariffs from the procuring states so as to pass on the additional fuel costs. However, due to the change in situation of supply of coal and in interest of consumers, the state government has withdrawn the order.
Adani Power has a 4,620 MW plant in Mundra, while Tata Power has a 4,000 MW plant in Kutch district.