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India loses $210bn from coal sale; Steel Stock hit-news22032012


Steel Companies dropped, after a government auditor's draft said India lost up to $210 billion in revenue by selling coal deposits too cheaply.

As per the report from the Comptroller and Auditor General's ( CAG) office, is making traders worried about a potential new scandal that could hurt foreign investments and hit a sector reliant on coal.

'Steel, which is the backbone of country's infrastructure, will be in a big mess if this report by CAG is true, said Vivek Mahajan, head of research at Aditya Birla Money.

'This has the potential to scare off FDI as well as FIIs from India,' he added, referring to the foreign investor flows that are crucial to Indian stock markets.

A Jindal company official could not immediately be reached for comment despite several attempts at a response.

Jindal Steel & Power down by 5.83%, JSW Steel down by 3.01%, JSW ISPAT Steel down by 0.80%, Steel Authority of India down by 0.46% and Tata Steel down by 0.35%.
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