Supreme-Court-verdict-of-coal-blocks

The historic verdict of scrapping of all coal blocks except four blocks brought out significant changes in the Indian economy. The previous mode of selective allocation has been declared as illegal and arbitrary. It clearly shows India’s stand against the improper allocation of national resources that has been practiced for the last two decades. Now the union government has the sole authority to auction off the cancelled blocks after the end of this fiscal year. Shares of other block holders such as Jindal Steel and Power Ltd (JNSP.NS), Hindalco Industries Ltd (HALC.NS) and Tata Power Co Ltd (TTPW.NS) fell after the latest ruling as they will not only lose their mines but may also be fined. The companies can enjoy their mines till the March end. The court, led by Chief Justice Rajendra Mal Lodha, let off two coal blocks operated by Reliance Power (RPOL.NS) and one each by state firms NTPC Ltd (NTPC.NS) and Steel Authority of India Ltd (SAIL.NS.  The block cancellation also hit several banks including power finance corporation and other finance companies.

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