February 21, 2018 / 4:27 AM / 3 months ago

BUZZ-India's pvt coal firms could push up costs for Coal India - Morgan Stanley

** Morgan Stanley says India’s move to allow private firms to mine coal for commercial use to be positive for the country’s coal production

** India will auction coal blocks to private companies, Coal Minister Piyush Goyal said on Tuesday, a move that would end restrictions on the sale and use of the fuel after more than four decades and end Coal India Ltd’s near-monopoly status

** Morgan Stanley says the move poses downside risk to Indian coal imports, but could take a few years for mining to start; maintains “underweight” for Coal India stock at PT of 221 rupees

** Aggressive bidding in auction could lead to higher overall cost and support domestic coal auction prices or vice versa, but that would not materially affect price of linkage coal supplies - MS

** Of 29 brokerages that cover the Coal India stock, 21 rate “buy” or higher, five “hold” and three “sell” or lower; median PT is 333.50 rupees - Thomson Reuters Eikon

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