All consumers of Mahanadi Coalfields Ltd (MCL), including power firms, who have inked fuel supply pacts with the PSU will have to transport 30% of the contracted quantity by road if it is within a limited distance.
Metals and cement stocks have not been popular with foreign institutional investors (FIIs) in the September quarter. Foreign ownership in most metals and cement companies declined for the first time in many quarters.
With the Narendra Modi government opening up the coal sector to commercial mining through an ordinance on Wednesday, state-owned Coal India Limited (CIL) might be faced with an immediate challenge of workers' protest.
State-run Coal India (CIL) is unlikely to benefit from the Narendra Modi-government's decision to bring an ordinance to facilitate the auction of all the 214 coal blocks - of which 42 are functional - cancelled by the Supreme Court last month.
The government's disinvestment programme might start with a big issue like that of Coal India Ltd or Oil and Natural Gas Corporation Ltd (ONGC) next month, while stake sales in Steel Authority of India Ltd (SAIL) could be put on hold.
The government is looking at a proposal to allow Coal India Ltd to engage consultants through competitive bidding for assisting the PSU in taking over the deallocated mines following the Supreme Court's verdict on blocks.
Forced to cut the volume of coal sold through electronic auction, government-owned Coal India Ltd (CIL) is likely to go for a rise in the notified price for sales under fuel supply agreements with power companies.