Power Grid to benefit from last mile connectivity; like CESC: IIFL

Prime Minister Narendra Modi launches new scheme promising electricity for all households by 2019. PM also makes a pitch for electric cars and solar stoves.

In an interview to CNBC-TV18, Devendra Kumar Gupta, CFO of Transformers and Rectifiers India and Harshvardhan Dole of IIFL spoke at length about the 'Saubhagya' scheme.

Dole said from stock perspective this should be seen very well for companies like NTPC which have signed long-term power purchase agreement (PPA) and the off take is much lower than the contracted capacity. Therefore their off take should start increasing immediately in the near future.

"Power Grid Corporation of India, a monopoly grid operator, should continue to benefit from last mile connectivity and in the private side we continue to like CESC, which is doing great work in terms of distribution," he added.

Transformers and Rectifiers' Gupta said implementation of Saubhagya scheme will take time.

He said procurement by government will help the overall transmission industry.

"People are reluctant to get the connection. So under this scheme government will give free connection at doorstep, certainly it will encourage more people, more household to connect with grid and that will generate a lot of connections to Discoms and ultimately it will help to improve their health also," said Gupta.