Coal news and updates

Coal India refuses to take over de-allocated blocks

According to Coal India sources, the company believes it will be a tedious process to acquire running mines and allocate manpower.


Coal India on Wednesday declined the government proposal to take over all the de-allocated coal blocks. The state-owned miner said there is not point in taking over blocks as they will be auctioned later.

According to CIL sources, the company believes it will be a tedious process to acquire running mines and allocate manpower. The Supreme Court last month cancelled 204 coal blocks allotted between 1993 and 2008.

The apex court had then asked Coal India to take over coal block to avoid disruption. Of the total 218 blocks, 14 coal blocks, which are state-run non-joint ventures, have been spared. Out of 42 operational coal blocks, 42 have been cancelled by the SC. Those exempted from this verdict include one block each allocated to NTPC and SAIL , and two to Sasan Ultra Mega Power Projects (UMPP).

The cancellation of coal blocks will come into effect from March 31, 2015. Coal India stock price On October 09, 2014, at 11:05 hrs Coal India was quoting at Rs 342.00, up Rs 0.65, or 0.19 percent. The 52-week high of the share was Rs 423.50 and the 52-week low was Rs 240.50. The company's trailing 12-month (TTM) EPS was at Rs 20.04 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 17.07. The latest book value of the company is Rs 26.04 per share. At current value, the price-to-book value of the company is 13.13.

Source: Moneycontrol