Coal India declines over 5% in two-days

The stock dipped nearly 4% to Rs 364, extending its Friday's 2% decline on the National Stock Exchange.

Coal India has dipped nearly 4% to Rs 364, extending its Friday’s 2.3% decline, on reports that the company has suffered a production loss of 50 million tonne (mt) of coal due to delays in environment clearance and land acquisition.

Coal and Power Minister Piyush Goyal on Thursday told parliament the projects, costing more than Rs 20 crore ($3 million), "could not be started due to constraints of land acquisition and environmental clearance", Reuters report suggests.

These projects, if implemented, could augment Coal India’s annual output by 52 million tonnes, Goyal said.

Meanwhile, the PTI report suggests that state-owned company is yet to enter into fuel supply pacts with 12 power units as issues like change in ownership and extension of coal supplies are still being examined by the government.

The stock opened at Rs 377 and touched a low of Rs 363 on NSE. A combined 1.94 million shares changed hands on the counter till noon deals on the NSE and BSE.