Supreme Court effectively orders a blanket de-allocation of coal blocks; positive for JSWE and CIL, broadly neutral for NTPC, according to Nomura Financial Advisory and Securities. In the much awaited final judgment on the coal block allocation issue, the Supreme Court (SC) has ordered a blanket de-allocation of all but two coal blocks allocated by the Government of India (GOI) via screening committees and government dispensation during 1993-2010.

''However, the SC has given a six-month transition period to the GOI and allottees of 42 producing/ready-toproduce coal blocks to make alternative arrangements. While the GOI's action plan on coal block auctions and minimizing disruption of coal availability from the de-allocated coal blocks will have key impacts on the power sector value chain, based on our reading of the judgment, within our coverage universe.''

''We believe implications are positive for JSW Energy (JSWE IN, Reduce) and Coal India (CIL, Buy) and broadly neutral for NTPC (NTPC IN, Buy); exuberance in Reliance's (RPWR IN, Neutral) stock price appears unwarranted. Power Grid (PWGR IN, Buy) remains our top pick,'' said Nomura.

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