Power, metal shares jump on coal reforms
Coal India falls 2.3% after the govt's move that will end state monopoly on coal
Mumbai: Shares of metal and power companies rose on Tuesday morning after the government on Monday approved an ordinance that will end state monopoly on coal mining and enable commercial mining by private companies in future.
Among gainers, Jindal Steel and Power Ltd rose 5.9%, Sesa Sterlite Ltd 2.3%, JSW Steel Ltd 2.1%, Hindalco Industries Ltd 1.7%, Tata Steel Ltd 1.4% and Bhushan Steel Ltd 1.3%. The BSE metal index rose 0.8%.
Coal India Ltd fell 2.3% after the move which will end state monopoly on coal.
Among gainers in the power sector, Bharat Heavy Electricals Ltd jumped 1.9%, PTC India Ltd 1.7%, ABB India Ltd 1.5%, NTPC Ltd 1.5%, Adani Power Ltd 1.5%, Reliance Power Ltd 1.1%, Tata Power Co. Ltd 1% and JSW Energy Ltd 1%. The BSE power index rose 1.1%.
Ramakant Tiwari, office bearer of Indian Mine Managers’ Association (IMMA) Singrauli chapter, said: “It is a welcome development. Let all the details come before we make a rational assessment. As has been mooted so many times earlier, coal mining sector must be opened up ensuring a level playing field with transparent rules of the game for the private sector."
A former senior government official, who did not want to be identified, said, “Central PSUs (public sector units) such as SAIL will get allocation of mines... Private players have to bid, which destroys the concept of a level playing field." The official said even if the government gets auction proceeds, its move to auction the blocks, which is state property, is arbitrary.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!