Power Stocks Fall Despite Rs 1.86 Lakh Crore PM-DHARA Push; Tata Power, Adani Power, NTPC Decline

Power stocks came under pressure in Thursday’s trade even as the government unveiled a Rs 1.86 lakh crore programme aimed at strengthening India’s power transmission network and supporting the integration of renewable energy. 

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Tata Power, Adani Power, NTPC and Power Grid were among the major names trading lower on October 1. The declines came a day after the Union Cabinet approved the PM-DHARA scheme, which includes investments in transmission infrastructure and battery storage. 

Tata Power, Adani Power Among Stocks Trading Lower 

Tata Power shares fell 1.7% to Rs 353.95, while Torrent Power declined by a similar 1.7% to Rs 1,224. 

Adani Power slipped 1.6% to Rs 200.55, while Power Grid Corporation of India was down 1.4% at Rs 256.85. NTPC shares declined 1.1% to Rs 318.25. 

The weakness extended to other names in the sector. JSW Energy fell 0.8%, Suzlon Energy declined 0.7%, while Vedanta Power was down 1.3% at Rs 32.44. 

The declines came despite the government announcing a major investment programme focused on strengthening the country’s electricity transmission infrastructure. 

What Is the Rs 1.86 Lakh Crore PM-DHARA Scheme? 

The Union Cabinet approved the PM-DHARA scheme on Wednesday. PM-DHARA stands for PM-Developing Harmonized and Accelerated Renewable-energy Access. 

The programme carries a total project outlay of Rs 1,86,405 crore and is aimed at strengthening intra-state transmission systems to enable the evacuation of up to 135 GW of renewable energy across states and Union Territories. 

Of the total amount, Rs 1,36,378 crore has been earmarked for developing intra-state transmission systems under Green Energy Corridor Phase III. 

Another Rs 50,000 crore has been allocated for the deployment of 50 GWh of Battery Energy Storage Systems. 

The scheme also includes total Central Financial Support of Rs 54,082 crore and is targeted to be implemented by FY 2032-33. 

Battery Storage Forms Key Part of Plan 

Battery storage is an important part of the programme because electricity generation from renewable sources such as solar and wind can vary depending on weather conditions. 

The proposed storage systems are intended to hold surplus electricity when renewable generation is high and make it available when generation drops. 

The programme is also designed to expand and upgrade intra-state transmission infrastructure, helping the grid accommodate a larger amount of renewable electricity. 

Power Demand, Coal Availability Also in Focus 

Separately, Jefferies remains positive on the power sector and has identified Adani Energy Solutions, JSW Energy and NTPC as its top picks, according to the Livemint report. 

The Ministry of Power has directed 112 captive thermal power plants to operate at full capacity between October 1 and December 31, 2026, using emergency powers under Section 11. 

Electricity demand has risen faster than expected, with month-to-date demand up 15% year-on-year. FY27 demand growth has reached 10%, compared with Jefferies’ earlier full-year estimate of 7%. 

Coal availability, however, remains tight. Thermal power plants currently have around seven days of coal stocks, while more than 40% have less than 25% of their required inventory. 

The Ministry is considering compulsory blending of imported coal to address the shortage. 

Merchant power prices have also risen amid the demand-supply imbalance. Prices doubled year-on-year in September 2026 so far, while average merchant prices for Q2 FY27 to date stood at Rs 5.7 per unit, up 46% year-on-year and 12% quarter-on-quarter. 

Against this backdrop, power stocks remained under pressure in Thursday’s session, even as the newly approved PM-DHARA programme laid out a sizeable investment plan for transmission infrastructure and energy storage.