JP Power hits a new low

JP Power is amongst the big losers on the BSE today morning. The stock hit a new 52-weel low today at Rs.17.30 and it remains around the same levels, down over 12% over Friday’s close.

The stock as such is not a favorite on the bourses due to its high debt and now it is confirmed that the company has suffered damages to its 400 MW power plant at Vishnuprayag, in the disaster ravaged district of Chamoli. The company has stated that its plant on the Alakananda river has been shut down and power generation has been stopped  w.e.f. June 16, 2013.

The company has stated that while it is taking effective steps to restore generation, assessment of damages due to the said flood conditions shall be made on restoration of commutation and connectivity to Barrage site. Unprecedented floods in river Alaknanda has resulted in Force Majeure event for 400 MW Vishnuprayag Project, commercial aspects of which shall be addressed in accordance with Power Purchase Agreement between Uttar Pradesh Power Corporation Limited (UPPCL) and the Company. The power plant is covered under Industrial All Risk Insurance Policy.