Jindal Steel shines on securing long term linkage from Coal India

While the major benchmark indices are struggling to sustain above its previous day close, shares of Jindal Steel and Power, is trading steadily in green on this Monday morning, following the company's announcement of securing long term coal linkage.

Steel major Jindal Steel has informed BSE that the company has secured a long term linkage of 0.5 million tonnes per annum to be supplied for the next 5 years in the recently concluded coal linkage auction under Sponge Iron sub-sector, conducted by Coal India Ltd.

This sourcing of coal will help Jindal Steel to secure fuel requirements and smooth operations of the company's sponge iron units.

The company had earlier secured 1.18 million tonnes of linkage capacity in captive power plant (CPP) sub-sector. With this linkage in sponge iron sub-sector, the total coal linkage capacity of the company will boost to 1.68 million tonnes per annum.

Investors have taken this move positively which lead to a surge in the stock price during this Monday morning trade. The stock spiked up about 5.42 per cent to make a high of Rs 83.60 per share during the first few hours on Monday.