The Supreme Court on Wednesday has cancelled 214 coal blocks, which were declared illegal by it in a previous judgement. The apex court has exempted 4 coal blocks allocated to SAIL, NTPC and Sasan UMPP from cancellation.

Commenting on court ruling on coal block allocation, Barclays Capital said, ''The 24 September Supreme Court (SC) decision on coal block allocations case paves the way for auction of coal resources in India, in our view. We expect the auctioning process to commence quickly for operational blocks and for other blocks where clearances have been achieved.''

''Incrementally, investors would now look forward to reallocation timeline, bidding pricing and government's stance on auctioning of currently non-operational coal blocks. Despite the near term negatives (for JSPL and Hindalco, in our coverage universe), the SC judgment offers the government an opportunity to introduce a transparent and sustainable mechanism for minerals allocation in India,'' it said.

''This should help provide long-awaited clarity around fuel security for projects stranded for lack of coal. We view the SC ruling as an opportunity for the government to implement an image make-over of the mining sector in India,'' it added.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.