Coal India (CIL) shares on Wednesday fell over 2 per cent in morning trade following a Presidential directive to the company to commit fuel supplies to power companies.
The move, announced after market hours on Tuesday, hit the stock on the Bombay Stock Exchange - with CIL shares opening weak and falling 2.26 per cent to an early low of Rs 335. The shares were trading down 0.86 per cent at Rs 339.80 at 1.24 pm.
The government had on Tuesday issued the directive to CIL to sign fuel supply agreements (FSAs) with power producers assuring them of at least 80 per cent of the total committed coal delivery.
The scrip showed similar movement on the National Stock Exchange (NSE) - falling to a low of Rs 334.60 in morning trade before trading 0.87 per cent lower at 1.24 pm at Rs 340.30.
The directive has been given to Coal India as it did not meet the deadline of March 31 set by the Prime Minister's Office to enter into agreements with power producers which are facing fuel crunch.
While the power producers welcomed the decision, analysts said CIL may stand to lose heavily in case it falters on its commitment to supply fuel to the energy firms.
With inputs from agencies