Hindalco, Jindal shares surge on govt decision to auction coal blocks | business | Hindustan Times
Today in New Delhi, India
Oct 22, 2017-Sunday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Hindalco, Jindal shares surge on govt decision to auction coal blocks

The new auction-based system will replace the earlier controversial policy of allotting coal blocks based on recommendations of a panel of bureaucrats, which the Supreme Court had struck down last month as arbitrary.

business Updated: Oct 21, 2014 12:30 IST

A day after the government decided to e-auction coal block allocations, shares of power and steel companies surged.

While Jindal Steel and Power Ltd gained 7%, while Hindalco Industries Ltd was up 2.2% in early trade on Tuesday.

The new auction-based system will replace the earlier controversial policy of allotting coal blocks based on recommendations of a panel of bureaucrats, which the Supreme Court had struck down last month as arbitrary.

The court had cancelled 214 blocks allotted since 1993, a move that threatened a nascent economic recovery.

Currently only steel, power and cement companies are allowed to own mines for their own use.

But in the future there could be commercial use of mines, a move that would enable private companies to get into trading coal and break the monopoly of public sector monolith Coal India.