Jindal Steel surges over 7 pct after govt's move to auction coal blocks

Reuters Market Eye - Jindal Steel and Power Ltd gains over 7 percent, while Hindalco Industries Ltd is up 1.4 percent. India said on Monday it would auction off coal blocks after the Supreme Court cancelled allocations in August.

India also said winners of the coal block allocations would have to pay back previous holders of the permits for their investment with a 12 percent return, according to local media.

(To read factbox on India's coal reforms, click http://in.reuters.com/article/2014/10/20/india-coal-reforms-jaitley-modi-idINKCN0I91X020141020)

(Reporting by Abhishek Vishnoi)