JSPL rallies over 3% as Delhi High Court restrains government from allotting coal blocks to CIL

NEW DELHI: Jindal Steel & Power Ltd surged as much as 3.53 per cent in trade on Tuesday, after the Delhi High Court has granted interim relief to Jindal Steel & Power Ltd (JSPL) by restraining the government from giving Coal India the two blocks in which the company had emerged as a successful bidder.

the stock ended trade 1.46 per cent higher at Rs 156.8. It hit a low of Rs 154.3 and a high of Rs 160 in trade today.

JSPL had approached the court to challenge the government's decision to reject its bids for Gare Palma IV/2&3 and Tara coal blocks in Chhattisgarh on the grounds that the bids were too low, ET reported.

The court has issued notice to the government to file a counter-affidavit in the matter that has been listed for March 26, added the report. The coal auction has faced several legal challenges particularly from companies that lost out, but the government is pushing hard for timely completion of the process.

It has argued that states would get revenue of overRs 2 lakh crore over the life of the mines auctioned so far, which it claims points to a much bigger coal scam in the past than the estimate of Rs 1.76 lakh crore, added the report.