While the Sensex closed 536 points or 1.46% lower to 36,305, the Nifty lost 175 points or 1.58% to trade at 10,967 level. This is the weakest closing since July 11 when it settled at 36,265.93. The Sensex has lost 1,249.04 points in the previous four sessions.

Lessons from the failure of some of India's biggest business names.

Earlier this year, the Coal Ministry had ruled out any possibility of dry coal shortage in the upcoming monsoon season and said that it had sufficient stocks to meet the demand of power plants.

The strong earnings took the stock to its all time high of 1,093 level in trade yesterday. The large cap stock gained 7.38% during the last one month outperforming the Sensex which gained 5.78% during the same period.

The state government hopes that various stakeholders, including banks, project developers and procurers will compromise on their part to revive these plants, which ran into losses.

Back in February, when the Reserve Bank of India introduced its revised framework for resolution of stressed assets, the banking sector and beleaguered companies alike were left shaking.

With coal stock of some power stations in the national capital region falling to an alarming level, the Railways has drawn up an action plan to increase supply of rakes to power plants in northern India, including Dadri.