Metal stocks gained as much as 9 per cent in mid-morning trade today after the Cabinet recommended promulgation of an ordinance to facilitate e-auction of coal blocks for private companies for captive use.
Shares of Jindal Steel & Power Ltd surged 8.89 per cent, Sesa Sterlite jumped 6.5 per cent and Hindalco Industries rose by 3.24 per cent on the BSE.
Tata Steel was up 2.59 per cent.
The move comes against the backdrop of the Supreme Court last month quashing allocation of 214 coal blocks to various companies since 1993.
"The Cabinet has recommended promulgation of an Ordinance to the President in order to resolve the pending issues particularly the situation arising out of the Supreme Court judgement quashing the allocation of the coal blocks," Finance Minister Arun Jaitley had said yesterday briefing the media after the Cabinet meeting.
"As far as the private sector is concerned, the actual users of coal in the cement, steel and power sectors who apply for a certain number of coal mines will be put in the pool and there would be an e-auction. A sufficient and adequate number of mines would be put so that actual users go back with the mines," he had said.
