homemarketstocks

Coal India plunges 6% as govt renews effort to open up commercial coal mining

Coal India plunges 6% as govt renews effort to open up commercial coal mining

Coal India plunges 6% as govt renews effort to open up commercial coal mining
Profile image

By Ankit Gohel  May 18, 2020 3:00:00 PM IST (Published)

Shares of Coal India Ltd (CIL) plunged 6 percent on Monday.

Shares of Coal India Ltd (CIL) plunged 6 percent on Monday after the government renewed efforts to open the mining sector for private companies, allowing wider participation to increase coal production in the country.

Recommended Articles

View All

The stock fell 6.02 percent to hit an intraday low of Rs 121.70 apiece on the BSE. At 2.52 pm, shares of Coal India traded 4.83 percent lower at Rs 123.25 per share.
The stock has declined over 47 percent in the last one year.
To curb coal import and enhance coal production in India, Finance Minister Nirmala Sitharaman on Sunday announced the auction of coal blocks for commercial mining, allowing private sector investment with relaxation on entry barrier, and under a revenue sharing model. The auction for commercial mining will now not restrict bidders on the basis of minimum net worth or technical qualification.
While announcing the fifth tranche of Rs 20 lakh crore economic stimulus package, Sitharaman said that the government will auction 50 coal blocks immediately for commercial mining through revenue share basis instead of the regime of fixed rupee per tonnes, thus ending the monopoly of Coal India.
“Commercial mining of coal will help us tap the locally available reserves and will increase the availability of coal in the Indian market at a cheaper and more affordable price making us less dependent on imports thereby reducing the trade deficit,” said Sajjan Jindal, Chairman of JSW Group in a tweet.
The mining plan has been simplified and 40 percent increase in production will be allowed via automatic route. The coal ministry has issued tender for Jharia and Ramganj CBM blocks of Coal India on May 16, 2020.
 
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng