GAIL down in the red

GAIL is down in the red today morning. The stock price lost over 3.5% to Rs.332.50, the lowest since 27th Feb.

The market is not happy with the news that GAIL has emerged as the lowest bidder to buy 7 wind power plants from IL&FS for Rs.4800 crore. These 7 units have a total generation capacity of 874MW at an average tariff of Rs.5 per kilowatt hour (kWh).

The company said engagement with the ORIX Japan, the other shareholders in the SPVs, with regard to the proposal is in progress, and the deal is expected to close in three weeks.