Coal news and updates

Govt may allow transfer of non-coal reserves: Sources

The Rs 5400 crore Jaypee and UltraTech deal may see some fruition as the government is now likely to announce a proviso to allow financially stressed companies to transfer all of its non-coal reserves to recover money and pay back the banks. In context with the merger, Jaypee was unable to transfer two of its limestone reserves to UltraTech, without which UltraTech was not really interested in the deal. So, just to take care of this problem, we may now see a proviso which may allow companies that are financially stressed, companies which might be bad assets, to sell or rather transfer all of these non-coal reserves along with the plant that is along with cement plants, along with steel plants to recover money and pay back the banks. The government is trying to address the problem of bad loans. So, once this proviso is in place, it will be great news for Jaypee and UltraTech. It is also great news for lenders.

source: http://www.moneycontrol.com