SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up
  1. Home
  2. Stock Market News
  3. Coal ruling to impact on country's nascent economic recovery: India Ratings

Coal ruling to impact on country's nascent economic recovery: India Ratings

26 Sep 2014 Evaluate

Supreme Court’s decision of coal block cancellation is likely to have an adverse impact on country's nascent economic recovery, according to rating agency, India Ratings, which feels that this landmark verdict would hit key sectors, like those of power and banking and also have some bearing on states. However, it also pointed that while the finances of six states would be affected by this ruling, with the worst hit being the state of West Bengal, there would be some windfall gain for the Central Government this fiscal from the additional levy imposed.

In a development which would have significant impact on the energy sector, the Supreme Court cancelled 214 coal blocks that were illegally allocated to private firms by various governments between 1993 and 2011 and exempted 4 coal blocks owned by the government. Further, the court also directed the allottees to pay a fine of Rs 295 per tonne from the time the coal was mined and allowed the government to auction or allot the blocks to central firms, though it did give six months breathing time to the private companies for winding up their blocks.

The rating outfit highlighted that the impact of this ruling will lead to a rise in non-performing assets of the banking sector, increase the cost of coal which in turn raise power tariffs and may also stoke inflation in case the fuel price hike is passed on to consumers completely. In its report, the agency highlighted that the decision is also expected to put pressure on current account/currency as coal would have to be imported at higher costs. Agency pointed the banking and financial institutions' exposure to these coal blocks was around a whopping Rs 2.5 trillion and apart from commercial banks, Rural Electrification Corp and Power Finance Corp, too, will be hit by the cancellation.

Register Now to get our Free Newsletter & much more!
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×