IEX‘s share price crashed sharply on Monday afternoon going down over 6% to hit an intraday low of ₹192.06.

What Happened: The slump today comes as the country’s power secretary Pankaj Agarwal confirmed the government’s plan for market coupling of power exchanges, as per an ET NOW report. Agarwal said the government was determined to implement the market coupling of power exchanges.

He also noted that issues related to transmission line constraints and the ROW aspect of the transmission lines are being addressed. The Power Secretary further stated that while India has adequate capacity for certain types of equipment, there is a need to boost capacity for specific categories.

Hence the government is considering a production-linked incentive-type scheme to support supply-side development. This matter will be discussed with industry stakeholders to determine the most beneficial incentive scheme.

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This move is seen as a crucial step towards improving the efficiency of India’s power sector. The market coupling mechanism is expected to lead to a more efficient use of generation resources, thereby reducing the cost of electricity for consumers.

The news of the government’s commitment to the market coupling of power exchanges had a significant impact on the share prices of IEX. Shares of the company have crashed 11% in the last 30 days.

Price Action: IEX’s share price was down 4.14% to trade at ₹196.13 in the late hours of trading on Monday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.