Markets

Power stocks fall up to 7 p.c. on SC order on coal allocation

Power sector companies’ shares continued to witness selling pressure falling as much as 7 per cent on Tuesday, after the Supreme Court held that all coal block allocations since 1993 till 2010 before pre-auction era during UPA and NDA regimes have been done in an illegal manner.

Power companies depend heavily on coal to run smelters and generate electricity.

Shares of Reliance Power tumbled 6.79 per cent, while Adani Power lost 6.44 per cent on the BSE.

Among others, Tata Power fell by 2.77 per cent, NHPC by 1.87 per cent, Torrent Power by 1.84 per cent and NTPC by 0.63 per cent.

“Shares of power generation and power distribution companies extended Monday’s losses triggered by a Supreme Court ruling that all coal mining licenses distributed since 1993 are illegal,” said Jayant Manglik, president - retail distribution, Religare Securities.

The Supreme Court on Tuesday held that all coal block allocations made since 1993 till 2010 before pre-auction era during previous NDA and UPA regimes have been done in an illegal manner by an “ad hoc and casual” approach “without application of mind”.

However, the consequences arising from the verdict of such coal blocks will be considered after further hearing by the apex court.



  • Coal block allocation: chronology of events
  • July 14, 1992

    A number of coal blocks, which were not in the production plan of Coal India Ltd and the Singareni Collieries Company Limited (SCCL), were identified and a list of 143 blocks were prepared.

  • 1993 to 2010

    A total of 70 coal mines or blocks were allocated between 1993 and 2005, 53 in 2006, 52 in 2007, 24 in 2008, 16 in 2009 and one in 2010.
    In all, 216 block were allocated between 1993 and 2010, out of which 24 were taken away at different points in time, effectively leaving the total number of allocated blocks at 194.

  • March 2012

    CAG’s draft report accuses govt of ‘inefficient’ allocation of coal blocks 2004—2009; estimates windfall gains to allottees at Rs 10.7 lakh crore.

  • May 29, 2012

    Prime Minister Manmohan Singh offers to give up his public life if found guilty in the scam * May 31, 2012: CVC, based on a complaint of two BJP MPs — Prakash Javadekar and Hansraj Ahir — directs a CBI enquiry

  • June 2012

    Coal ministry forms an inter—ministerial panel to review the process of allocation of blocks and to decide either on de—allocations or forfeiture of bank guarantees.
    Since then, the government has taken back about 80 coal fields while bank guarantees in 42 cases have been forfeited.

  • August 2012

    CAG’s final report, tabled in Parliament, tones down loss to exchequer figure to Rs 1.86 lakh crore.

  • June 2012

    Coal ministry forms an inter—ministerial panel to review the process of allocation of blocks and to decide either on de—allocations or forfeiture of bank guarantees.
    Since then, the government has taken back about 80 coal fields while bank guarantees in 42 cases have been forfeited.

  • August 2012

    CAG’s final report, tabled in Parliament, tones down loss to exchequer figure to Rs 1.86 lakh crore.

  • August 25, 2012

    Govt claims CAG’s presumptive loss theory flawed, no mining yet.

  • August 27, 2012

    PM says CAG flawed; “The observations of the CAG are clearly disputable”

  • September 6, 2012

    PIL in SC seeks cancellation of 194 coal block allotments Supreme Court begins monitoring the CBI probe into the coal field allocations

  • March 2013

    The Apex Court asks CBI not to share probe details with govt

  • April 23, 2013

    Standing Committee on Coal and Steel, in a report tabled in Parliament, says coal blocks distributed between 1993—2008 done in unauthorized manner. Says allotment of mines where production not started should be cancelled.

  • April 26, 2013

    CBI Director Ranjit Sinha submits affidavit saying investigation report shared with law minister Ashwani Kumar.

  • May 10, 2013

    Ashwani Kumar resigns.

  • June 11, 2013

    CBI registers first information report (FIR) against Naveen Jindal and Dasari Narayana Rao.

  • October 16, 2013

    CBI files an FIR against industrialist Kumar Mangalam Birla and former coal secretary PC Parakh.

  • July 2014

    The Supreme Court sets up a special CBI court to try all coal field allocation cases.

  • August, 2014

    The CBI decides to close its case against Birla and Parakh.



This article is closed for comments.
Please Email the Editor

Printable version | May 12, 2021 2:45:46 AM | https://www.thehindu.com/business/markets/power-stocks-fall-up-to-7-pc-on-sc-order-on-coal-allocation/article6353862.ece

Next Story