Jindal Steel & Power Ltd. (JSP), India’s
biggest steel producer by market value, fell to its lowest price
in more than three months after a court-appointed panel scrapped
the approval for its coal mining project.
The shares fell for the second day, declining 4.3 percent
to 484.55 rupees, the lowest level since Jan. 9, at the close in
Mumbai. The stock has risen 7 percent this year, compared with
an 11 percent gain in the benchmark Sensitive Index.
The National Green Tribunal, set up in October 2010 to hear
cases relating to environmental protection and forest
conservation, scrapped the project on April 20 and asked the
Ministry of Environment and Forests to repeat public hearings.
The tribunal said the environment ministry ignored the mandatory
procedures while granting the license to Jindal Steel.
The company plans to develop a 4 million metric ton coal
mine and a washery of similar size in the central Indian state
of Chhattisgarh. Jindal Steel is seeking to build coal mines to
feed its proposed power plants in the country.
Sushil Maroo, the group chief financial officer at Jindal
Steel, didn’t respond to two calls made to his mobile phone.
The tribunal on March 30 suspended environment approval
given to Posco’s proposed $12 billion steel plant in Orissa
state. It said the environment ministry should reassess the
conditions on which clearance was granted to the project last
year, Environment Minister Jayanthi Natarajan said that day.
Source: Bloomberg
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