JINDAL STEEL AND POWER LTD. MOVES DELHI HIGH COURT AGAINST CANCELLATION OF COAL BLOCKS ALLOCATED TO THEM
Jindal Steel and Power Ltd (JSPL) today moved the Delhi High Court against the decision of the Centre to cancel coal blocks allocated to it.
JSPL said it feared the blocks Gare Palma IV/2, IV/3 and Tara in Chhattisgarh might be allocated to someone else as the government is “moving very fast”.
The matter was mentioned before a bench of justices B D Ahmed and Sanjeev Sachdeva by senior advocate Rajiv Nayar, who sought an urgent hearing. The court listed the matter for hearing today before the appropriate bench.
Shares in Jindal Steel slumped as much as 14.9%, heading towards their biggest daily loss since June 11, 2013. They pared some of the losses later.
The absence of coal blocks for the company’s power business leaves its 3.4 gigawatt (GW) of capacity near-stranded with linkage of only 1.2 GW in place, analysts at brokerage Kotak Institutional Equities said in a report to clients.