The Supreme Court’s decision that all coal blocks allocated during 1993 to 2010 by the government have been allocated illegally and arbitrarily, is likely to create overhang in the sector, according to a report.
“While it is difficult to quantify stock implications before the next course of action by the Supreme Court is known, we believe that the Supreme Court ruling would be an overhang on the sector in the near term,” Barclays said in a report today.
Yesterday, the apex court, which examined allocation of 218 blocks, said that “Common good and public interest have, thus, suffered heavily, as there was no fair and transparent procedure, all resulting in unfair distribution of national wealth”.
However, the court said that consequences arising from the verdict of such coal blocks would be considered after further hearing by the apex court.
- Here’s Why Delhi-NCR Gets Pollution Code On Lines Of Beijing
- PM Modi Is More Interested In TRP Politics Rahul Gandhi At Congress Parliamentary Meet
- Bigg Boss 10 December 1 Review: Priyanka Jagga Succeeds In Her Divide And Rule Strategy
- Kahaani 2 Audience Reaction: Vidya Balan Starrer Thriller Gets Mixed Reviews
- Find Out What PM Modi Said About Demonetisation On LinkedIn
- Row Over West Bengal ”Military Coup” Issue Escalates: Who Said What
- Here’s How Mohammad Kaif Replied To Virender Sehwag’s Birthday Wish On Twitter
- West Bengal CM Mamata Banerjee’s Flight Reportedly Had Low Fuel: Here’s What Happened
- Reliance Jio Welcome Offer Extended Till March 31, JioMoney Launched
- Uri Attackers Came From Pakistan, Establishes Digital Data
- Bigg Boss 10 Nov 30 Episode Review: Captaincy Brings Differences In Manoj Punjabi & Manveer Gurjar
- Congress Vice President Rahul Gandhi’s Official Twitter Handle Hacked
- After Rahul Gandhi’s Twitter Handle, Congress Official Twitter Account Hacked
- 3 Dead As Army Helicopter Crashes In Sukna In West Bengal
- BJP, Congress Engage In War Of Words Over Nagrota Attack: Find Out More
For JSPL, the apex court’s ruling not only creates uncertainty on profitability from existing operational coal blocks (Gare Palma IV/I /2/3) but also on the profitability of the USD 2.6 billion investment in the Angul Steel and Power project as the associated Utkal B1 block is unlikely to be allocated now, the report said.
For Hindalco, profitability of Mahan and Aditya smelters is to a large extent dependent on allocation of associated coal blocks (Mahan and Talabira-II), the report said.
Tata Steel’s Ganeshpur (thermal coal block) and Kotre Basantpur (coking coal block) allocation could also be impacted, the report said.
The report said that though JSW Steel’s Rohne coal block was allotted in 2008, there was not much progress on this mine and hence limited stock impact to JSW Steel is expected.