Shares of Jindal Steel & Power shot up by over 15 per cent amid reports that the Competition Commission of India (CCI) has given a clean chit to Jindal Steel & Power (JSPl) on allegations of cartelisation saying it hasn’t found enough evidence to support the same. The stock surged 15.31 per cent to hit a high of `94.10 on the BSE.
The Government in March this year had rejected the company’s bids for three coal blocks, including Gare Palma IV/2 and 3 and Tara, which it had won in the first two rounds of coal auctions. Gare Palma-IV/2&3 is the richest coal block with 155 million tonnes of extractable reserves and received the lowest bid in the two phases of auction running from February 14 to March 8.
The bids were cancelled amid reports of speculation of cartelisation during auctions. The Government had forwarded the complaints alleging cartelisation against JSPl to CCI, stating the company indulged in anti-competitive practices and price cartelisation. The Government had cited low bids as the reason for cancellation of the winning bids.
JSPl had also legally challenged the cancellation by filing a case against government’s decision of rejecting bids for the said coal blocks. The matter is currently sub-judice and the High Court’s verdict is awaited on the same.
The company had reported a consolidated net loss of `617.94 crore for the quarter ended September 2015 on account of impairment loss of `226.82 crore in Australia and forex hit of `212.60 crore. The Naveen Jindal-led firm registered a net profit of `441.83 crore in the same period a year-ago period.