Coal India turns red

In the early morning trades, Coal India was down almost 2.5%. The stock which had closed yesterday at Rs.285.45, opened lower at Rs.279, went on to intra day low at Rs.274.95 and now it has recouped, hovering around Rs.283 levels, still in the red.

The stock is down in the red following the hefty fine of Rs.1773 crore imposed by the Competition Commission of India (CCI). This fine was imposed after CCI stated that Coal India was abusing its dominant position in supply of dry fuel. It found the company operating independent of market forces and has a virtual monopoly in production and supply of coal.

This ruling has come from CCI following complaints issued by Maharashtra State Power Generation Company and Gujarat State Electricity Corporation against Coal India and its three subsidiaries - Mahanadi Coalfields, Western Coalfields, South Eastern Coalfields.