JSPL may be spared complete de-allocation of coal blocks: Deven Choksey, KR Choksey Securities

In a chat with ET Now, Deven Choksey, MD of KR Choksey Securities, shares his views on JSPL. Excerpts:

ET Now: If the coal blocks are de-allocated, that will change the fortunes of JSPL. It became a power company only after 1992 when it got coal blocks for free. What are your thoughts on JSPL?

Deven Choksey: It is possible that the de-allocation of JSPL could create disruption in their business. However, there is a possibility that instead of completely de-allocating and making the company suffer on the business front, they may probably go for the revised policy which may be an auction route in which the company may end up paying a little higher price but not asked to completely surrender the coal blocks.

Since we do not have clarity on this subject as yet, I would refrain from making any further comments on it. If the situation I mentioned earlier permits their economic value, it should not affect JSPL beyond a point.